Golden balance: Why gold is a strong hedge but shouldn’t dominate your portfolio
09-Jan-2025
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Dipankar Jakharia
Contd from previous issue
Although gold has provided steadier returns, particularly in times of crisis, experts agree that it should primarily be used for hedging to balance a portfolio.
The general guideline is to allocate10 per cent to gold, though this may vary by individual. A more aggressive equity investor might allocate
15 per cent, while a conservative investor may prefer 5 per cent.
The purpose of this article is to caution against short-term opportunities that might arise from casual discussions or advice from “experts” on social media. In investing, success is rarely found in short-term ideas driven by market noise.
Instead, it lies in habits formed over the
long term, with ideas nurtured through personal interest and an individual approach—never a hurried move.
Concluded