The gold trade is dead. Long live gold.
Gold should therefore hold a permanent place in every diversified portfolio. A strategic allocation of 5–10%, with 7.5% as a reasonable benchmark, is appropriate. Equity-heavy investors, those exposed to rupee depreciation or those prioritising capital preservation, may move closer to 10%. New investors should build exposure gradually through low-cost, physically backed gold ETFs or regulated gold funds, then rebalance annually. Gold is not a replacement for productive assets; it is insurance alongside them.
