Will the USD collapse drive gold to Rs 20L? Should I move my Rs 80L portfolio to physical gold?

Financial media thrives on fear-mongering regarding the collapse of the US dollar but logic dictates a different reality. Almost 70% of global trade is conducted in USD right now. If the USD collapses the entire global fiat system including the Rs and the Chinese Renminbi collapses with it.

The US has issued its debt to itself and to countries worldwide so if the $ goes to zero global purchasing power vanishes. Pessimists argue that in this scenario gold will skyrocket to Rs 20L per 10 grams. But if fiat currency has failed who will you liquidate your gold to?

A jeweler handing you worthless fiat currency does not help you preserve your purchasing power. The reality is that there is a healthy balance of asset classes globally and fundamentally proven asset classes are not going to zero.

You should stick to accumulating Grade-A assets across different classes instead of making panic moves. Gold ETFs or Sovereign Gold Bonds remain the highest quality commodity asset but they should be part of a balanced portfolio. Maintain a strict cash buffer of around 20% so you have liquidity to buy high-quality assets during normal market corrections.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.