Gold has appreciated by fifty percent in the last one year, from Rupees 74000 to 110,000.
Gold is by far the safest and most liquid asset in the world. It is not amenable to control of any one authority. It remains the ultimate fallback in case of economic collapse or war. It is easy to buy, easier to store, and easy to keep hidden from the greedy eyes of Big Brother.
All fiat currency is maya, illusion. All economies are run by a seat of the pants approach, with covering fire provided by so called economists who are clueless.
It is good to ride the bubbles created by fiat currency and the chaos of the financial markets. Stocks are a good investment, but they are like riding a roller coaster, you should know when to get on and get off.
Bonds are great to provide a steady income stream, and to prevent erosion of wealth that is measured based on that illusory piece of paper called money.
But the only things that offer protection from inflation and preservation of wealth in the long run are gold and real estate. Of the two, gold requires zero knowledge or technical expertise, carries zero risk and involves zero active management.
The price of gold today, or the percentage increase in the last one year are irrelevant. We make the mistake of comparing gold with that constantly fluctuating chimera called money and think that the price of gold is going up or down. Actually, gold always remains steady, like a rock anchored in crashing seas, while the waves around it roil in turbulence.
All portfolios should have a significant allocation to gold. Especially when times are turbulent, like now, and like every other time in history!