Every time gold prices hit a new high, the same question comes up — is it the right time to buy gold or have we missed the train?
Gold has been on a continuous rally for the last few years. Central banks around the world are buying and holding gold in huge quantities. Naturally, many investors — especially in India — are wondering if they should also invest in gold, and if yes, how to do it the right way.
In this blog, I’ll share my personal experience of investing in gold — how much I allocate, what instruments I use, what worked for me, and what didn’t. This is not financial advice — just my real story and learnings as an Indian investor.
Why I Invest in Gold
Gold is one of the oldest and most trusted assets in India. It acts as a hedge against inflation, a safe store of value, and a liquid emergency fund.
For me, gold is not a short-term trade. It’s a part of long-term financial stability. I see it as a core diversification asset — something that balances my equity-heavy portfolio.
My Gold Allocation
As a family, our current gold allocation is around 15% of our investable wealth.
This includes everything — stocks, mutual funds, debt, FDs, and cash — but not real estate.
Interestingly, this percentage wasn’t planned. It just happened naturally over time. But now, with more awareness, we’re gradually increasing it to 20%.
The right allocation, however, is personal. It depends on your comfort, goals, and how you sleep at night. Some investors prefer 5%, others go up to 30%. There’s no universal formula — it’s about what helps you stay balanced and confident.
My Gold Portfolio: Instruments I Use
I invest in multiple forms of gold — both physical and digital. Here’s how my gold portfolio looks right now:
- 50% in Physical Gold & Jewellery
- 40% in Sovereign Gold Bonds (SGBs)
- 10% in Gold Coins & Bars
- A tiny portion in Digital Gold (via Gullaq)
Let’s go through each one.
1. Sovereign Gold Bonds (SGBs)
Sovereign Gold Bonds are one of my favorite instruments for long-term gold investing.
When I started buying SGBs, not many people were optimistic about them. But over time, they’ve proven to be excellent.
Here’s why I like them:
- The value of my SGBs has almost doubled in 3–4 years.
- I receive the promised interest on time every year.
- The redemption process has been smooth.
Challenges
- Long Lock-in period [ 8 Years]
- You can invest only when the government issues new tranches.
If the scheme opens again, I’ll definitely invest more.
2. Gold Coins and Bars
I also hold some gold coins and bars — mostly bought from reputed sources like MMTC and Augmont
These are 99.99% pure and government-approved, which means there’s very little risk of impurity.
Pros:
- Safe and high purity
- No Making Charges
- Good for gifting or storing
Cons:
You can’t take loans against them easily. Unlike jewellery, banks or gold loan companies don’t usually accept coins and bars as collateral.
So, while they’re great to own, they’re not very useful during emergencies.
3. Digital Gold via Gullaq
I started experimenting with digital gold using the Gullaq app.
I invested ₹75,000 around 8–9 months ago. Today, that investment is worth around ₹1.3 lakh [due to rising price of gold]
I’ve received all the interest and referral bonuses on time, so the experience has been good so far.
However, I haven’t redeemed yet. So the real test will be when I try to convert that digital gold into physical gold or cash.
If you’re planning to invest with Gullaq, you can use my referral code mentioned at the end of the post — it gives you a discount & helps me as well
4. Gold ETFs (Why I Haven’t Invested Yet)
Gold ETFs are a great product.
- well regulated
- easy to start
- no issue of theft or purity
But I haven’t invested in them for one simple reason:
You don’t actually own physical gold.
To me, gold works best as a tangible asset — something you can hold and store yourself.
That’s my personal bias. If you prefer digital convenience, ETFs are an excellent option.
5. Monthly Jewellery Purchase Plans
This is something I’m planning to start soon — buying gold jewellery in small monthly instalments.
Why I like the idea:
You actually hold physical gold — your hedge is real.
It doubles as jewellery — you can use the asset & brings joy to your family.
Big discounts on making charges which is otherwise considered biggest drawbacks of investing in jewellery
It works like a gold SIP — you invest in a disciplined way and average out the cost.
You can easily pledge jewellery for a loan in case of emergency.
Of course, jewellery has downsides — storage, safety, making charges — but for me, it’s still a meaningful and emotional form of wealth.
My Key Takeaways on Gold Investing
Gold should be part of your long-term plan, not a short-term bet.
The ideal allocation depends on your comfort and goals.
Diversify across instruments — SGBs, jewellery, digital gold, coins etc.
Always buy from trusted and verified sources.
Don’t chase price movements — buy gradually and hold.
Gold gives peace of mind, especially during uncertain times.
Final Thoughts
Gold will always have a place in Indian households — not just emotionally, but financially.
Whether you invest through SGBs, coins, or digital gold, the key is to stay consistent and invest smartly.
If you found this useful, share it with someone who’s thinking about investing in gold.
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⛔ DISCLAIMER ⛔
This is not financial advice. I am not a registered advisor. I am sharing my experience purely for educational purposes. Please consult a licensed professional before investing.