Is gold still a necessary hedge in 2026? Planning to add it to my Rs 1.5Cr equity/debt portfolio.

You should aim for a 10% to 15% allocation to gold in your portfolio to act as a strategic hedge against global debt and economic uncertainty.

It is completely normal to feel like you missed the rally when you see prices jumping up by 73% in Rs terms. But looking at gold purely through the lens of recent price action misses its fundamental role in a modern portfolio. We generally advocate for a 10% to 15% allocation of gold alongside your equities and debt.

Over the past few years, massive macroeconomic shifts have strongly validated this exact strategy. While geopolitical tensions and trade wars often cause short-term price spikes, the real long-term driver for gold is actually global debt. Mounting US debt and shifting confidence in the US dollar have forced central banks worldwide to become major net buyers.

They are not just buying for geopolitical hedging but for pure economic certainty. In fact, global investment demand for gold recently crossed a staggering $6-$10 trillion. That translates to roughly Rs 25L cr per day moving into the asset class.

Gold is no longer just a traditional cultural heirloom or a vague asset sitting in a locker. As the financial ecosystem modernizes, gold is cementing its place as a highly liquid, contemporary asset class. Adding that 10% to 15% slice to your Rs 1.5Cr portfolio gives you a structural shock absorber when equity markets or currencies face turbulence.

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