With 30% YTD returns, gold continues to glitter brightly this year

Why present global uncertainties, gold price volatility is your sign to increase gold allocation

Read more at:
https://economictimes.indiatimes.com/wealth/invest/why-present-global-uncertainties-gold-price-volatility-is-your-sign-to-increase-gold-allocation/articleshow/120636886.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Gold reserves in 2024 (tonne)

• Geopolitical, economic growth uncertainties leading to demand.
• Increased buying by global central banks as gold acts as a hedge against currency volatility and economic instability.
• India gold reserves grew by 343% between 2023 and 2024.
• India has the fifth largest gold reserves.

• Gold allocation should not be more than 5-10%.
• Over-allocation could dampen portfolio growth over the long term.
• Gold does not generate income like equities or bonds.

Asset allocation (%)

• Indian investors have a strong preference for gold.
• Their allocation to gold is 10 times compared to allocation by global households.
• Allocation to equity in Indian households is 50% visa-vis global allocation.