All that glitters is gold

Summary: Equity markets offer long-term growth, but not without heartburn. That’s where diversification comes in, and gold and silver still have a role to play. This piece breaks down how these precious metals can cushion your portfolio, what drives their returns and why a little allocation goes a long way. Equities have delivered the highest returns since the inception of market indices such as the Sensex and Nifty. Yet, the journey has been anything but smooth. Markets have experienced prolonged periods of volatility, even periods of zero or negative returns. That is why investors are often reminded to build resilience into their portfolios. The simplest way to do that is through diversification. Diversification isn’t just about owning more than one stock. Yes, holding a mix of companies helps, but true diversification goes further. It’s about spreading risk in a thoughtful manner. You can do this by investing gradually through SIPs (systematic investment plans) or STPs (systematic transfer plans), which help smooth out market ups and downs. You can also diversify into other asset classes, such as debt and gold, which adds a layer of stability. Additionally, you can also choose to invest internationally and diversify beyond domestic markets. As the old saying goes, “Don’t put all your eggs in one basket”. With that in mind, let us look at two traditional options that continue to play a diversifying role in our portfoli

This article was originally published on October 28, 2025.