Gold & Silver Ready for Next Big Leg Up? 360 ONE Asset’s Rahul Khetawat Shares Tactical Allocation Strategy

Why It Matters

A Fed‑driven rate easing could reignite demand for gold and silver, offering a low‑correlation hedge that strengthens portfolio resilience in volatile markets. Understanding the gold‑to‑silver ratio and disciplined allocation helps investors capture upside while managing risk.

Key Takeaways

• Fed rate cuts could reignite gold and silver price gains
• Gold‑to‑silver ratio above 85 signals cheap silver relative to gold
• 12‑15% precious‑metal allocation diversifies multi‑asset portfolios
• 360 ONE fund caps commodities at 25‑40% for disciplined scaling
• ETFs offer pure exposure; multi‑asset funds provide professional rebalancing

Pulse Analysis

The recent consolidation of gold and silver follows a historic rally that pushed both metals to lifetime peaks earlier this year. Khetawat argues that the pause is more a healthy technical correction than a structural shift, and he flags the U.S. Federal Reserve’s upcoming rate‑cut cycle as the most likely catalyst. Lower real interest rates historically lift precious‑metal prices, while ongoing central‑bank buying and renewed geopolitical tensions add further upside potential. Investors watching these macro levers can position themselves for the next leg higher.

From a tactical standpoint, the gold‑to‑silver ratio remains a key barometer. When the ratio climbs toward 85‑90, silver becomes relatively cheap, offering a high‑beta play that can outperform gold’s steadier gains. Because silver also serves industrial demand, its volatility is higher, making it suitable as a satellite position for risk‑tolerant investors. Conversely, a ratio near 50 signals cheaper gold, reinforcing its role as the portfolio anchor. Monitoring the ratio helps investors time entry points and rebalance between the two metals efficiently.

For portfolio construction, Khetawat recommends a 12‑15% allocation to precious metals, a range that delivers meaningful diversification without sacrificing long‑term returns. Within the 360 ONE Multi‑Asset Fund, commodities—including gold and silver ETFs—are managed inside a 25‑40% band, ensuring changes are driven by fundamentals rather than short‑term noise. Individual investors must decide between direct ETF exposure, which offers transparency and lower costs, and a multi‑asset fund that provides professional rebalancing and broader diversification. The choice hinges on the investor’s conviction, expertise, and desire for active management.