Did you know that in 2022, India consumed 600.6 tonnes of Gold as jewellery, which reduced to 562.2 tonnes in 2023. On the other hand, China took over in its demand for gold jewellery by buying 630.2 tonnes. India also saw huge investment in Gold via the Sovereign Gold Bonds, 2023 saw record high subscriptions.

Yes, it’s been a great run so far for all the gold lovers and is expected to do well in the near future as well. Several reasons can be attributed for to this unprecedented rise, Inflation, Global interest rates, Global geo political tensions, Central banks stocking up on Gold etc.

And now with Akshay Tritiya round the corner, there will be more chatter and frenzy for buying gold among other metals, rising it’s price even further.

Now before you get blinded by the shining gold and go rushing to buy more gold, take a pause and look at the performance of all the asset classes over a period of time. Refer to the below table that shows the last 14 years data. You will see that that the podium winners keep changing.

You will notice that winners rotate across asset classes. Different asset classes outperform / underperform in different market cycles. However, as investors we get carried away by all the noise around us and are biased by short term returns, therefore, so we tend to invest in assets which performed well in the recent past. Over the last 15+ years, different asset classes like Equity, Debt, Gold and International outperformed each other at different times. Hence Rank 1 rotates across asset classes. Don’t forget the rank 2 and 3 are also podium winners.

If you already have Gold (in any form) in your portfolio, then there is really no need to rush for it right now. If you see the above report, you will notice that Gold was not even a podium winner on most occasions. A diversified portfolio of equity, debt, international, real estate and gold should be the order of the day. This way you de risk yourself and also get to win(earn) in every situation. The allocation should totally depend your goals, timelines of these goals and the risk you are willing to take for these goals.

Remember, everything that shines isn’t always going to be gold.