In Tiny Doses

Gold has time and again proven itself to be a safe haven. It makes sense to make it a part of the portfolio in spite of notso-great returns

Indians love gold. The country is the world’s second-biggest buyer of the yellow metal and consumes 800-900 tonnes of it annually, as per the World Gold Council. But does it make sense to make gold part of your portfolio?

ALL THAT GLITTERS? More than a crucial investment avenue, gold should be looked at as a tool to spread risk and diversify. It is a safe haven during economic volatility, especially during phases of high inflation.

Experts suggest an exposure of 5-10 per cent. Balwant Jain, an independent tax and investment expert, says, “While one should hold around 5 per cent in gold at any time, currently we are recommending investors to park 10 per cent in the metal,” says Jain.

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