Gold's Unwavering Relevance in Investment Portfolios

In a recent statement, CEA V Anantha Nageswaran highlighted the enduring significance of gold, not just as a cultural and religious ornament but as a pivotal asset for portfolio diversification. Speaking at the IGPC-IIMA annual gold and gold markets conference 2025, Nageswaran emphasized gold's role in the global monetary system's evolution.

With a remarkable 8% increase in value over the last three months, gold prices have soared to $2,860 per ounce, marking a tenfold rise since 2002. In India, the price per 10 grams has reached approximately Rs 85,000, underscoring the country's status as a net importer of gold.

Policy Challenges and Opportunities

Nageswaran pointed out the dual challenge and opportunity that gold presents for India. The need to productively utilize gold assets without undermining their value as a store of wealth and cultural symbol is paramount. "That is where the policy challenge lies," he remarked, highlighting the intricate balance between leveraging gold for economic benefits and preserving its intrinsic value.

Amidst global inflation fears and the aftermath of policy decisions dating back to 1973, gold's prominence is expected to remain high. Nageswaran's insights shed light on the strategic importance of gold in navigating future economic uncertainties.