As Gold Crosses Rs 1 Lakh Mark, How Diversified Should Be Individual Portfolio? Can Gold Become More Than Just A Safe Haven Asset?

Gold costs reached a historical milestone on April 22, with the speed of 24-carat gold touching Rs 1,00,000 consistent with 10 grams for the primary time ever. Rising international debt, power inflation, and escalating geopolitical divides, has outlined the yellow steel’s function in person portfolio as much more an important. 

It is not only a ‘balancer’ — it is a core part, Jateen Trivedi, LKP Comm VP analysis advised Zee News.

“Gold has lengthy been thought to be a hedge — a protecting layer in a single’s portfolio towards financial uncertainty, inflation, or geopolitical possibility. But its contemporary trajectory, breaching the Rs 1 lakh mark, cements gold’s standing now not simply as a security web however as a significant wealth-building asset, he added.

According to Trivedi in contrast to fairness markets, the place volatility will also be sharp and directionless because of home or international sensitivities — be it rate of interest selections, coverage tweaks, or geopolitical tensions — gold has showcased outstanding 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 within the contemporary weeks, how a lot gold must be in a portfolio?

Trivedi says, all through unsure occasions or stagflationary stages, gold can quite shape 25–30% of a person’s portfolio. In sturdy fairness bull cycles, a 15–20% allocation nonetheless is smart for possibility 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 buyers must stay gold publicity between 10% to 15% in their general portfolio. That is sufficient to cushion towards volatility, he provides.

Aksha Kamboj, Executive Chairperson, Aspect Global Ventures & VP, India Bullion & Jewellers Association (IBJA) mentioned, “The newest upward push in gold costs above the Rs 1 lakh degree is greater than a headline-making file. It marks a bigger shift in the way in which buyers are viewing wealth control in a extra unsure global. Gold has been the go-to safe haven for generations in occasions of financial turmoil — an break out when markets become risky or currencies depreciated.

Kamboj mentioned that gold, addition to being a easy protection web, is turning into a strategic, long-term funding 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 mentioned.

Satish Chandra Aluri, Lemonn Markets Desk opines that the hovering of gold costs to its historical prime —at a time when fairness markets have observed sharp corrections –highlights the expanding significance of portfolio diversification and gold’s enduring function as a hedge all through turbulent occasions.

“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 provides.