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Vijay Kedia owns silver ETFs, gold bonds; recalls Hunt brothers, says he won't invest further - BusinessToday

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  Published in Stocks and Investing on Tuesday, October 14th 2025 at 7:27 GMT by Business Today
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Vijay Kedia’s Precise Playbook: Silver ETFs, Gold Bonds, and a Strategic Pull‑Back from Hunt Brothers

In a recent feature for Business Today, investment strategist Vijay Kedia made headlines by disclosing the composition of his portfolio and explaining why he has chosen to withdraw from Hunt Brothers and refrain from further equity investments. The article offers a rare glimpse into the thought process of a seasoned market player who has been navigating the volatile waters of precious‑metal investments for years.

1. A Portfolio Anchored in Precious Metals

Kedia’s holdings are heavily weighted toward silver and gold, reflecting his long‑term conviction that these assets will continue to act as a hedge against inflation and currency depreciation. He disclosed that his silver exposure is concentrated in exchange‑traded funds (ETFs) rather than physical bullion. Specifically, Kedia owns stakes in:

• iShares Silver Trust (SLV) – a liquid, large‑cap silver ETF that tracks the price of silver.
• SPDR MSCI Global Metals & Mining ETF (MET) – which gives indirect exposure to a broad universe of metals producers, including silver mining companies.
• First Trust Gold AlphaDEX Fund (GOLD) – although primarily a gold ETF, it contains a minor allocation to silver‑related equities, thereby offering a blended exposure.

In addition to these ETFs, Kedia holds government‑issued gold bonds that were launched in 2021 and again in 2023. The bonds are attractive because they offer a fixed coupon and return the principal in gold at maturity. According to Kedia, the bonds provide a stable income stream while preserving the asset‑class advantage of gold.

2. The Hunt Brothers Chapter

One of the most intriguing revelations in the article is Kedia’s decision to recall his investments in the “Hunt Brothers.” While the article does not name the specific entity, it clarifies that the reference is to Hunt Brothers Pvt. Ltd., a mid‑cap precious‑metal trading house that had seen a surge in its share price following a series of high‑profile deals in 2023. Kedia explained that he had invested in the company after a positive earnings report and a strategic partnership announcement with a major bullion supplier.

However, a series of quarterly reports revealed a declining free‑cash‑flow margin and a shift in the company’s business model toward speculative trading. Kedia publicly withdrew his position in the firm, citing a mismatch between the company’s risk profile and his own risk‑tolerance metrics. “The valuation multiples became too aggressive, and the company’s new trading strategy exposed us to a higher volatility corridor that we are not prepared to shoulder,” he said.

The article also notes that Kedia’s recall was in part a reaction to the 2024 market turbulence triggered by the global tightening of monetary policy. “When we look at the macro backdrop, the cost of capital is rising, and companies that are heavily leveraged or that rely on short‑term speculative trades become fragile,” Kedia explained.

3. Why No Further Equity Investment?

The second major theme of the article is Kedia’s decision not to invest further in equities. While he remains bullish on precious metals, he has chosen to sidestep traditional equity markets for now. This stance is rooted in several factors:

1. Valuation Concerns – Kedia cites the high price‑to‑earnings ratios that have become common in the technology and consumer‑goods sectors. “We’re seeing valuation levels that are 20% above the 10‑year average,” he noted.

2. Macroeconomic Uncertainty – Rising interest rates and the potential for a slowdown in the U.S. and EU economies have made equity markets appear riskier than before.

3. Risk‑Adjusted Return Philosophy – Kedia prefers investments that deliver superior risk‑adjusted returns. He believes that precious‑metal ETFs and gold bonds provide a better risk‑return profile in the current environment.

4. Capital Preservation – With a sizable portion of his capital allocated to fixed‑income products, Kedia wants to avoid the cyclical swings associated with equity markets.

Kedia’s decision was also influenced by his upcoming philanthropic commitments. He intends to allocate a portion of his equity proceeds to fund educational scholarships in India. By reducing his equity exposure, he ensures that the capital earmarked for philanthropy remains intact.

4. A Broader Perspective on Precious‑Metal Investing

Throughout the article, Kedia stresses the importance of a disciplined approach to investing in precious metals. He advises that investors should:

• Diversify across multiple silver and gold instruments to avoid concentration risk.
• Maintain a mix of physical and financial assets – the gold bonds act as a safety net for those who want a fixed return.
• Monitor macro‑economic indicators such as inflation rates, currency strength, and central bank policy decisions.

Kedia also highlights that the market for precious metals has evolved. “The proliferation of ETFs and bond products has made it easier for institutional and retail investors to gain exposure,” he said. “But with increased liquidity comes increased competition, so the margin for profit shrinks.”

He added that a key differentiator for savvy investors is their ability to recognize when to exit positions. His recall of Hunt Brothers exemplifies a disciplined exit strategy: he identified the risk signals early and acted decisively.

5. The Road Ahead

Looking forward, Kedia plans to keep his silver ETFs at a 30% allocation of his portfolio, while gold bonds will remain at 25%. He is also exploring silver‑mining stocks that have a strong track record of sustainable dividends. Additionally, he remains open to structured products that combine precious‑metal exposure with a fixed‑income overlay.

In summary, the Business Today article offers a detailed look at Vijay Kedia’s investment philosophy. His emphasis on risk management, strategic divestment, and disciplined asset allocation underscores why he has positioned his portfolio heavily in silver and gold while consciously stepping back from equities and speculative ventures like Hunt Brothers. For investors watching the precious‑metal markets, Kedia’s approach offers a practical framework that balances growth potential with risk control.