Indian investors shifting focus from gold-only trading to strategic commodity allocation
Sunil Katke of Kotak Securities notes that India's approach to commodities is changing from short-term trading to long-term diversification. He highlights copper and silver alongside gold as key assets for portfolio shock absorption.
Sunil Katke, National Head of Commodity-Retail at Kotak Securities, states that the mindset surrounding commodity markets in India is evolving. Historically, these assets were treated merely as cyclical instruments for short-term trading based on price movements. Currently, structural forces such as deglobalisation, the energy transition, infrastructure spending, and geopolitical uncertainty are altering this perspective. Katke explains that gold has successfully established itself as a strategic asset for Indian investors, but the opportunity is expanding to include silver, copper, and other critical commodities. The traditional equity-debt portfolio combination no longer provides sufficient diversification during inflationary or geopolitical shocks, making a commodity allocation sleeve increasingly relevant. Katke clarifies that investors are moving away from asking 'Can I trade commodities?' toward considering 'What role should commodities play?' in their long-term strategy. While specific percentages for exposure remain unspecified, the discussion emphasizes copper's structural demand driven by artificial intelligence and data centers as a distinct growth story separate from gold.
