Gold regains shine at $1.1k/oz

But Invest Max 10%: Experts

Mumbai: Gold is again in the spotlight after prices rose above $1,100 an ounce in Europe on Monday on continued demand for the precious metal as investors use it as a hedge against uncertainties in the global economy. However, financial experts warn investors against going overboard on the yellow metal, as prices are unlikely to soar further in the near future. 

    "I would recommend most conservative investors to invest a maximum 10% of their portfolio in gold. Anything more than that would be counter-productive. Normally, individuals should limit their exposure to 3% to 5%,'' says Suresh Sadagopan, chief financial planner, Ladder 7 Financial Advisories. "Though gold has the potential to appreciate more than in the last 20 years, it is unlikely to be a one-way journey. There will be a lot of volatility,'' he adds. 
    Investors have woken up to the glitter of gold since the precious metal has outperformed all other assets, including stocks, a year ago. Since then, they have been investing in a variety of options like coins, gold ETFs, etc. According to experts, gold ETFs are the best options for retail investors to invest in gold as it doesn't involve physical possession of the metal. Gold ETFs returned around 7.77% in the last one year.