With 30% YTD returns, gold continues to glitter brightly this year India's gold reserves surged by 343% between 2023 and 2024, positioning it among the top nations. While Indian investors favor gold, experts advise limiting allocation to 5-10% for optimal portfolio growth
Gold reserves in 2024 (tonne)
What is fuelling demand?
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 vs equity (5-year return)
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.Source: Anand Rathi Wealth.
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This story originally appeared on: India Times - Author:Faqs of Insurances
