When it comes to the yellow metal, “To have or not to have it in your portfolio”, that is the question. The other question is, “How much?”
The answer to the first question is a resounding, thumping YES!! Just look at historical data and you will realise two things. One, over a sufficiently long term, the price of gold only moves north. Second, almost everytime the stock market goes through a major correction, the price of gold moves further north.
The answer to the second question is a bit subjective. Depending upon your risk appetite and age, gold could be anywhere from 5% to 10% of your overall investment portfolio. Some even advocate having up to 15% of your portfolio in gold. The actual investment amount (in rupees) can be adjusted when the values of gold and your other investments increase or decrease/move up or down with time.