Gold prices reached a historic milestone on April 22, with the rate of 24-carat gold touching Rs 1,00,000 per 10 grams for the first time ever. Rising global debt, persistent inflation, and escalating geopolitical divides, has defined the yellow metal’s role in individual portfolio as even more crucial.
It is no longer just a ‘balancer’ — it’s a core component, Jateen Trivedi, LKP Comm VP research told Zee News.
“Gold has long been considered a hedge — a protective layer in one’s portfolio against economic uncertainty, inflation, or geopolitical risk. But its recent trajectory, breaching the Rs 1 lakh mark, cements gold’s status not just as a safety net but as a serious wealth-building asset, he added.
According to Trivedi unlike equity markets, where volatility can be sharp and directionless due to domestic or global sensitivities — be it interest rate decisions, policy tweaks, or geopolitical tensions — gold has showcased remarkable resilience.
“Its correction phases tend to be short-lived and far less severe in magnitude. This makes gold not only a low-volatility asset but also a long-term compounder when held strategically. Relying solely on equity markets to build wealth demands constant attention, portfolio reshuffling, and sector rotation — shifting between large caps, defensives, midcaps, and high beta stocks depending on market cycles. This timing-driven strategy adds complexity and risk. In contrast, gold is a singular, straightforward asset class — it doesn’t require intricate tracking or timing. It’s a quiet compounder,” he added.
Given the upward graph of bullion in the recent weeks, how much gold should be in a portfolio?
Trivedi says, during uncertain times or stagflationary phases, gold can reasonably form 25–30% of an individual’s portfolio. In strong equity bull cycles, a 15–20% allocation still makes sense for risk balancing.
“And importantly, this does not include gold jewelry in lockers, which serves more as consumption than investment. We’re talking about financial gold — be it through ETFs, sovereign gold bonds (SGBs), or digital gold. As gold evolves from being a hedge to a high-performing asset, investors must evolve their perception too. In an increasingly volatile world, gold offers simplicity, stability, and strength — not just safety,” he added.
Meanwhile Trivesh D, COO Tradejini opines that retail investors should keep gold exposure between 10% to 15% of their overall portfolio. That is enough to cushion against volatility, he adds.
Aksha Kamboj, Executive Chairperson, Aspect Global Ventures & VP, India Bullion & Jewellers Association (IBJA) said, “The latest rise in gold prices above the Rs 1 lakh level is more than a headline-making record. It marks a larger shift in the way investors are viewing wealth management in a more uncertain world. Gold has been the go-to shelter for generations in times of economic turmoil — an escape when markets became volatile or currencies depreciated.
Kamboj said that gold, addition to being a simple safety net, is becoming a strategic, long-term investment in balanced portfolios.
“While stocks, bonds, and alternative investments remain the bedrock of investment strategy, experienced investors are coming to regard gold not only as a hedge, but also as a substantial contributor to portfolio stability and value protection,” she added.
“In a time of inflation fears, currency volatility, and geopolitical tensions, gold provides an unusual pairing: protection in bear markets and the possibility of gradual appreciation over time. It is no longer just a matter of buying gold in times of crisis. More and more investors are incorporating it as a fundamental part of their plans for building wealth — appreciating its strength and dependability in both good and bad markets,” Kamboj said.
Satish Chandra Aluri, Lemonn Markets Desk opines that the soaring of gold prices to its historic high —at a time when equity markets have seen sharp corrections –highlights the increasing importance of portfolio diversification and gold’s enduring role as a hedge during turbulent times.
“More than just a traditional safe haven, gold is now being embraced by a wider spectrum of investors, including institutions and central banks, as the global economic landscape undergoes dramatic shifts. With decades-old systems of globalization and international economic cooperation being redefined, gold has emerged as a resilient asset in an era of geopolitical and technological transformation,” Aluri adds.