Gold vs Equities: What should be your portfolio diversification strategy? Experts weigh in

Gold price today: Gold has remained significantly volatile in 2025, posting over 30 per cent gains since last year. On April 22, Gold prices touched peak of ₹1 lakh per 10 grams.

Historically, Gold has posted a 15 per cent CAGR return since 2001. Gold return has also beat the Inflation and has outperform inflation more than 2% to 4% from 1995 onwards, say experts.

According to Manoj Kumar Arora, Managing Director at Almondz Global, Gold prices are expected to remain elevated with continuous buying from central banks on concerns of geopolitical tensions, tariff threats, inflation concerns in US.

“We believe Tariff-driven recession and stagflation risks are forecasted to continue for gold’s structural bull run. We keep our positive stance on Gold with strong central banks’ purchases and demand stemming from falling Treasury yields that will push gold prices to continue to be one of the best-performing assets in 2025,” Arora said.

Gold vs Equities - What should be your portfolio diversification strategy?

Experts believe that Gold has always acted as a safe option in times of economic uncertainty, however, putting all your money into gold and ignoring stocks would not be wise.

Yogesh Kansal, Co-founder and Chief Business Officer, Appreciate suggest keeping about 5–15% of your portfolio in gold, a similar amount in short-term bonds, and the rest in a mix of Indian and international stocks.

“This year, stock markets have struggled with rising inflation and renewed trade tensions between the U.S. and China. To invest in gold, Nippon India ETF Gold BeES and SBI Gold ETF are large Gold ETFs that give the benefit of price appreciation without the downsides of physical gold. Also, Kotak and ICICI Prudential offer lower-cost alternatives with expense ratios of 0.55% and 0.5%, respectively. Besides Indian and U.S. stocks, looking at European companies like defense firms, chipmaker ASML, and pharma leader Novo Nordisk can add strength to your investments,” Kansal said.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.