gold investment strategy: Bullion Breakout? Analysts weigh in on gold investment strategy ahead

The yellow metal’s surge never seems to deter its fans. It only adds to the allure. While the Great Equity Run may have helped investors discover a quicker way to creating wealth than savings, the bond endures. We bring an investor’s perspective on what you could do ahead.

CHIRAG MEHTA

Chief Investment Officer, Quantum Asset Management

We have seen a big run-up in prices, but this has been structural not speculative. That said, no asset moves up in a straight line. Investors should increase their gold allocation over the next 6-12 months. Those who have already allocated enough to gold should stay put.

PRATHAMESH MALLYA
Deputy VP-Research, Non-Agri Commodities and Currencies, Angel One

Gold is at such a high price now that it is in unchartered territory. So there is a big possibility of a price correction of at least 10% from the current levels. When that will happen, that’s hard to say. Gold prices in the past few sessions have seen a gap-up. Many investors lost the opportunity to buy between Rs 85,000–Rs 1 lakh. Prices went up by nearly 30% between January and April, and might gain another Rs 5,000 from here, but a correction is due. If you have a time horizon of five years, then stagger your buyingNAVEEN MATHUR
Director – Commodity, Currency and GIFT City, Anand Rathi

It’s very difficult to predict how much more gold will move up from these levels. However, the bullish trend still continues. If the Tariff war intensifies between the US and China—which is the likelihood—then that is good news for gold prices. There could be some profit booking at these levels— especially from speculative counters—so that might pull price down. But overall, the trend is bullish. You should stagger your investments in gold. Do not see gold from a return perspective. Look at it more as a portfolio diversifier. In times of adversity, gold allocation cushions your portfolio

LAKSHMI IYER
CEO, Investment and Strategy, Kotak Alternate Asset Managers

Gold prices have run up too fast, too soon. There could be a small pause and correction at these levels. However, there is merit in doing investments if you are under-diversified in gold. Buying the dips is a more appropriate strategy. Will we see a lot of profit booking now? Only from speculative counters who had bought it for trading. If you have a long-term horizon, it doesn’t make sense to sell your gold now. But I will still caution people from investing in gold just on the basis of past return