Gold prices hit record high, should you invest in the yellow metal now? Experts weigh in

Gold prices on 23 September hit ₹1,13,253 (for 24 carat gold) and ₹1,03,833 (for 22 carat gold). Barely three weeks ago, the prices were 7 percent lower. The prices for 24-carat had closed on 1 September at ₹1.05 lakh, and at ₹96,363 for 22-carat.

So, the key question hovering in the minds of investors is this: Is this the right time to buy precious metals? We spoke to a few experts, and this is what they had to say:

Not the time to sell

One expert we spoke to emphasised that this is not the right time to sell yellow metal since the prices are likely to rise further. “Gold prices have been rising for some time and will continue for some more time. One of the reasons for this is that central banks have been buying gold for some time. Investors can continue to invest in gold for some time. This is not the time to book a profit. It will continue till the uncertainty continues," says Sridharan S, founder of Wealth Ladder Direct.

For a balanced portfolio

Experts also warn that gold is an important constituent for a portfolio but not as a standalone asset, while acknowledging that there would be a greater interest among investors in the run-up to the festive season.

Swapnil Aggarwal, Director of VSRK Capital, says, “Currently, global uncertainties such as geopolitical tensions and tariff wars are surely lending support to gold prices, making it a safe haven. However, investors should keep in mind that prices are likely to change depending on the movement of the US dollar and policy cues from the Federal Reserve on interest rates. For regular investors, gold works best as part of a balanced portfolio rather than as a standalone bet. With the festive season in India adding to demand, retail interest may remain firm in the near term."

Siddharth Alok, AVP Investments, Epsilon Money, echoes similar sentiments when he says, “Gold, more than the returns, plays a crucial role in portfolio diversification and as a hedge against economic uncertainty. Therefore, rebalancing rather than a full exit or buying aggressively makes more sense.”

Staggered buying

Given the price jump, if you are contemplating investing in gold in one go, experts have a contrarian advice on offer. “Staggered buying instead of lump-sum investments may make sense at current levels. For investors, digital routes like ETFs or sovereign gold bonds can be more efficient and liquid ways to participate,” adds Mr Aggarwal.

“Buying any asset at record highs is risky, same for gold. Hence, incremental buying through SIP or on dips is a safer option if the portfolio is underexposed to gold,” adds Siddharth Alok of Epsilon Money.

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