Gold Investment: What is the 5-15% 'Golden Formula' that protects against losses and makes you rich?
Gold Investment Rule: Gold, once a luxury purchased for weddings and festivals, has now become a wise investment. This year, gold has achieved record-breaking performance, hitting all-time highs (Gold Price Today) daily during the festive season, delivering robust returns to investors. Due to uncertainty in the global market and the stock market, gold has once again emerged as a safe investment and a preferred choice.
But investors often wonder how much gold should be kept in their portfolio to avoid losses. Experts recommend a golden formula, known as the 5-15% Gold Rule, which provides both balance and security to your investments. The question now is, what exactly is the 5-15% rule? Let's understand.
What is the 5-15% Rule?
The 5-15% Rule states that only 5% to 15% of your total investment assets should be in gold. If you have a higher risk appetite or are active in the stock market, 5% is sufficient. However, if you want stable returns and security, or are nearing retirement, holding 10-15% in gold would be appropriate.
The formula is simple: Gold Allocation = Total Portfolio × (5% to 15%)
For example, if your portfolio is worth ₹10 lakh, investing between ₹50,000 and ₹150,000 in gold would be appropriate.
What determines the strength of gold?
The price of gold in India also depends on the strength or weakness of the rupee. In October 2025, the rupee reached a record low of ₹88.8 per dollar. When the rupee falls, gold becomes more expensive. This is why gold protects your portfolio during market turmoil.
Which form is best to buy gold?
Gold ETF or Mutual Fund: The easiest and most digital method for those with a demat account.
SIP: A better option for gradually increasing your investment.
Sovereign Gold Bond (SGB): Sovereign Gold Bonds are best for long-term investments, as they offer 2.5% interest annually and tax-free returns upon maturity. However, new installments are not issued until October 2025.
Tax and Timing Considerations
If a gold ETF or fund is held for more than a year, it attracts a 12.5% long-term tax. SGBs, on the other hand, are tax-free after maturity; only the interest is added to income. Physical gold has GST, making charges, and storage issues, so digital gold is considered a more prudent investment today.
How to Follow the 5-15% Rule?
Instead of investing all your money at once, invest through SIPs or in phases. Review your portfolio annually to ensure the gold portion does not exceed the prescribed limit. This approach will protect you from market downturns and provide greater stability in the long run.
What are the gold and silver prices today at IBJA?
The India Bullion and Jewelers Association recorded the price of 24-carat gold (gold price today) at ₹1,20,815 per 10 grams in the morning, which fell to ₹1,20,770 by evening. This represents a slight decrease of ₹45. Silver prices also declined. The price of silver in the morning was ₹1,49,142 per kilogram, which fell to ₹1,49,125 by evening, a decline of only ₹17.
What are the gold and silver prices in your city today?
City Gold/Silver per 10 grams per kg
Patna ₹122,170 ₹149,670
Jaipur ₹122,220 ₹149,730
Kanpur ₹122,270 ₹149,790
Lucknow ₹122,270 ₹149,790
Bhopal ₹122,370 ₹149,910
Indore ₹122,370 ₹149,910
Chandigarh ₹122,240 ₹149,750
Raipur ₹122,190 ₹149,690
It should be noted that today, i.e., Saturday, is Ekadashi (Devuthani Ekadashi 2025), and on this day, The wedding season (2025) is starting from 2025 and will continue until December. Experts believe that gold and silver prices may see another rise in the coming days.
