24 Carat Magic

Should You Ditch Stocks For Gold? It Is Advisable To Diversify Your Portfolio With Both. Consider Physical Gold, Etfs, And A Staggered Investing Approach For A Stronger Portfolio

- NAVNEET DUBEY

GOLD'S BEEN ON a tear lately. Its prices have kicked off the year with a bang, soaring past the ₹75,000 mark on the Multi Commodity Exchange of India Ltd (MCX) in April. This impressive surge, fuelled by a steady dollar, has been a global phenomenon, with gold surpassing the $2,400 mark in the international market in April.

Jateen Trivedi, VP of Research-Commodities and Currency at financial services provider LKP Securities, says, "The outlook for gold over the next five years remains bullish. Factors such as de-dollarisation and the increasing importance of gold as a hedge against inflation and economic instability suggest strong future performance. Gold prices could conservatively reach ₹1 lakh per 10 gm over the next five years."

However, the only potential dampener might be the strengthening of the Indian rupee, which could slow the pace of price increase in domestic markets. Nevertheless, the global factors favouring gold's rise are likely to outweigh this.

"Gold prices have been down for many years. In the recent months, it has started moving up. Whenever a commodity, which has been static for a long period, starts moving, it gathers momentum. That's what is happening with gold right now. The momentum is building, and who knows how high gold rates will go," veteran American investor Jim Rogers, founder of Rogers International Commodity Index, told Business Today TV recently.

HEAD-TO-HEAD

In 2024, the yellow metal has been a clear winner, outperforming both the benchmarks Nifty50 and the S&P Sensex by a significant margin. As of June 14, gold has surged 14.5% year-to-date, significantly outpacing the Nifty and Sensex, which gained only 8% and 6.6%, respectively.