New Delhi, Jan. 26 -- There is a familiar storyline whenever gold hits a new high while silver lags. The script is predictable: gold has already moved, so silver is the catch-up trade. The idea appeals to bargain-hunting instincts and the fear of missing out on a precious-metals run-up.

term asset allocators, however, buying silver simply because it looks like "cheap gold" is a lazy thesis, and a category error that can materially distort portfolio construction.

Silver is not gold's little brother. It is a different asset with a different personality. Gold functions primarily as a monetary metal, driven by real interest rates, currency debasement, and central-bank behaviour. Silver, by contrast, has a split identity. It can act as a mon...