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As Diwali 2025 approaches, investors are once again faced with a familiar dilemma: should they buy gold and silver, or turn to equities for better returns?

In an exclusive conversation with Zee Business Managing Editor Anil Singhvi, Amisha Vora, Chairperson and Managing Director of Prabhudas Lilladher (PL) Capital, shared her balanced view on how investors should navigate the current market environment.

Vora, a market veteran with over three decades of experience, believes the Indian economy is entering a strong and stable phase.

“For the first time in a while, we have a growing economy where inflation is under control and liquidity is comfortable,” she said. “That combination creates a very healthy setup for investors.”

Gold and silver have delivered exceptional returns over the past year, with prices rising by nearly 40–50 per cent. However, Vora feels that the steep rally is largely behind us.

“Gold and silver gave everyone easy returns last year; you didn’t need to think too hard, just buy and hold. But after such a big move, the upside from here looks limited," she said.

She acknowledged that central banks and global treasuries are still adding gold to their reserves, but the pace of price appreciation may not match last year’s momentum.

“The trend of accumulation will continue, but I don’t see it translating into aggressive price gains now,” she explained.

Her advice to investors: don’t rush to add more gold or silver now.

“Gold and silver should remain a part of a diversified portfolio, but I wouldn’t recommend adding aggressively at these levels,” she said.

Turning to equities, Vora struck a more optimistic note. She believes Indian markets are well-positioned for the next leg of growth, supported by a stable macroeconomic backdrop and improving corporate fundamentals.

“The market’s risk-reward looks very favourable right now,” she said.

Even as foreign investors have been net sellers, Vora pointed out that domestic investors have kept the markets strong.

“Indian valuations might appear expensive compared to China, but the quality of our companies, higher ROEs, lower debt, and strong domestic demand, justifies the premium,” she explained.

She expects the next wave of growth to be driven by consumption.

“Until now, infrastructure and manufacturing were leading the story. But now, as demand picks up, consumption will take centre stage,” Vora said.

She highlighted auto, consumer durables, FMCG, and retail banking as key areas likely to benefit.

Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.

He has previously worked wi