With few credible alternatives, gold has emerged as the main non-dollar reserve asset. The euro remains exposed to fiscal risks, the yuan lacks market depth, and other currencies are too small to attract meaningful flows, DSP notes.
For investors, the report suggests sticking with the trend until gold prices approach an estimated fair value band of $3,130–$4,400 per ounce, calculated using money supply data and historical gold-to-silver ratios.Silver, by contrast, remains well below its previous peaks, with a potential range of $52–$74 per ounce.
“Gold and silver do not have a common intrinsic value yardstick. Therefore, in bull markets, it is logical to let the allocation continue until the trend continues on the upside without calling for market tops,” the Netra report says.
DSP advises reducing allocations only once prices approach the higher end of its range or if the uptrend weakens. India, which holds about 15% of the world’s mined gold, could see a direct impact on household wealth if the rally sustains.

