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Gold performs well in crisis times; should a long term investor switch to gold-heavy portfolio?

Gold performs well in crisis times; should a long term investor switch to gold-heavy portfolio?
Gold performs well in crisis times; should a long term investor switch to gold-heavy portfolio?
Shekhar would do well to use gold as a diversification tool.

Synopsis

Historically, gold has performed well in crisis times, when other forms of investments are avoided by investors. Does it make sense to replace your entire fixed-income portfolio and some part of equity funds for the next 2-3 years to gain from the potential rally in gold?

Shekhar has been tracking gold prices and finds that in the past seven months, gold prices have jumped nearly 50% in India. This is phenomenal growth by any standards. Historically, gold has performed well in crisis times, when other forms of investments are avoided by investors. This phenomenon is called ‘flight to safety.’ Shekhar is enthused and excited by the returns and in the backdrop of the pandemic, he expects that gold as an asset class
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