Financial expert Alok Jain, founder of Weekend Investing, advises investors to fundamentally shift their perspective on gold. Instead of treating the yellow metal as a short-term trading commodity, Jain advocates for its role as a strategic, long-term portfolio allocation that should be accumulated consistently over time.
"Gold is an allocation. You have to accumulate it at every point until you reach your desired allocation," Jain stated in a recent commentary. He stressed that this approach differs significantly from averaging down on equities, where the underlying company's fundamentals can permanently deteriorate, posing much higher risks. Gold, by contrast, serves as a stable asset to diversify against broader economic uncertainties.
Why Experts Remain Bullish on Gold
Jain’s bullish outlook on gold stems from a confluence of global macroeconomic factors. He points to the escalating levels of sovereign debt across major economies, where governments are increasingly reliant on borrowing to finance their expenditures. This growing debt burden, coupled with persistent fiscal deficits and expanding interest payment obligations, raises critical questions about the long-term sustainability of the current monetary system.
Further bolstering the case for gold is the continued trend of central banks globally increasing their gold reserves. These official institutions are actively reducing their dependence on traditional reserve assets like US Treasuries, signaling a broader shift towards tangible assets amidst heightened geopolitical and financial instabilities worldwide.
Current Market Dynamics and Long-Term View
While gold prices in India saw a decline on July 24, 2026, with 22-carat gold priced at ₹13,280 per gram (down ₹270), and international spot gold slipping to around $4,043 per ounce, Jain argues that investors should look beyond short-term fluctuations. He draws parallels between current market conditions and the 2008-2011 gold rally, suggesting that the metal may be in an "oversold phase" despite strong underlying macroeconomic drivers.
Market analysts attributed the recent sell-off to evolving expectations around monetary policy, particularly concerns over rising crude oil prices fueling inflation, which could lead central banks to maintain tighter interest rate policies for longer. This dynamic can temporarily overshadow gold's traditional safe-haven appeal.
Despite a volatile 2026, where gold surged above US$5,500 an ounce earlier in the year before falling below US$4,000 by late June, the World Gold Council notes it remains one of the best-performing assets over the past year. Jain cautions against waiting for a "perfect" entry point, emphasizing that a worsening economic outlook or renewed geopolitical tensions could trigger another significant rally, reinforcing gold's role as a crucial portfolio hedge.