A simple thumb rule is gaining popularity among investors who want clarity on gold allocation. The formula is easy. Divide your age by two to know the percentage of gold that should be part of your portfolio. A 30‑year‑old should ideally hold 15% in gold while a 50‑year‑old should keep 25%. Experts say this method balances risk and stability as age increases.
Financial planners explain that gold acts as a store of value and provides protection during uncertain times. Central banks across the world accumulate gold as a monetary asset. Silver, on the other hand, is more dependent on industrial demand and is not considered a reserve asset. This is why the rule focuses only on gold.
Rebalancing is essential. If gold prices rise sharply and holdings exceed the suggested share, investors should trim positions to maintain balance. For example, a portfolio worth ₹20 lakh for a 30‑year‑old should have ₹3 lakh in gold, equal to 15%. A 50‑year‑old should keep ₹5 lakh in gold, equal to 25%. The allocation increases with age, offering older investors more stability.
Analysts emphasise that gold should never be fully exited. It should be adjusted regularly to match the recommended share. This simple formula helps investors maintain discipline and long‑term security.