Is gold still worth keeping in your portfolio? Here's what Sridhar Sivaram of Enam Holdings thinks

Sridhar Sivaram, Investment Director at Enam Holdings, remains convinced that gold deserves a permanent place in your portfolio, especially as a guard against economic uncertainty.

Sivaram’s call to invest in gold holds strong, even as gold prices hit a new high on October 30, driven by investor caution before the US election.

Spot gold peaked at a record $2,778.79 during early trading.

In India, 4-carat gold (10 grams) traded at ₹80,450, while 22-carat gold was priced at ₹73,750, with rates rising by ₹650 and ₹600, respectively, over the past 24 hours.

For Sivaram, gold’s role is crucial as a hedge against inflation, currency devaluation, and rising market volatility.

These factors, combined with increased central bank buying, are expected to support gold prices in the coming years, which he believes makes it a wise choice for long-term investors.

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Over the past two decades, he points out, gold has delivered nearly 14% returns—matching the Nifty—while remaining more stable, with only four years of losses compared to frequent drawdowns in equity markets.

“The maximum drawdown in (gold) any year has been only 8% as compared to, say, a Nifty which has had two years when it has had more than 25% drawdown. So it’s been a very stable asset class,” he noted.

This stability is invaluable, especially with current global economic trends that include extensive currency printing by central banks.

Gold, he argues, functions as a reliable “store of value,” contrasting it with riskier assets like Bitcoin.

With central banks worldwide increasing their gold reserves and inflationary pressures potentially rising, Sivaram recommends that investors allocate at least 10% of their savings to gold, whether through exchange traded funds (ETFs), or other paper instruments.

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