Gold isn't a trade, it's an allocation: Why Alok Jain says investors should keep buying the yellow metal
Gold should be treated as a long-term portfolio allocation rather than a short-term trading opportunity, according to Alok Jain, Founder of Weekend Investing. He says investors should continue accumulating the yellow metal gradually instead of trying to time the market like they would with stocks.
- Jul 24, 2026,
- Updated Jul 24, 2026 4:10 PM IST
Gold investment: Gold should not be viewed like a stock that investors buy and sell based on short-term price movements. Instead, it should be treated as a long-term portfolio allocation that investors build over time, according to Alok Jain, Founder of Weekend Investing.
In a recent market commentary, Jain argued that despite gold's strong rally over the past few years, the precious metal still presents what he described as a "once in a decade opportunity" for investors looking to strengthen their portfolios against macroeconomic risks. However, he stressed that accumulating gold is fundamentally different from averaging down on equities.
Gold is an allocation, not a trade
Jain said investors often make the mistake of treating gold like an equity investment, attempting to time purchases based on short-term price movements.
"Gold is an allocation. You have to accumulate it at every point until you reach your desired allocation," he said. By contrast, averaging down on individual stocks carries much higher risks because a company's fundamentals can deteriorate permanently. "A stock could be averaging down and it never comes back," he noted.
According to Jain, investors should therefore view gold as a strategic asset rather than a tactical trade. The objective is not to maximise returns from every purchase but to gradually build exposure that can help diversify a portfolio during periods of economic uncertainty.
MUST READ: Gold, silver prices today (July 24): Check latest rates in Delhi, Mumbai, Kolkata, other cities
Why experts are bullish
Jain believes the long-term case for gold remains intact because the global macroeconomic backdrop continues to favour real assets.
He pointed to rising sovereign debt levels across major economies, arguing that governments have become increasingly dependent on borrowing to finance spending. According to him, the growing debt burden, persistent fiscal deficits and an expanding interest payment obligation raise questions about the sustainability of the current monetary system.
He also highlighted continued purchases of gold by central banks, saying official institutions are still increasing their gold holdings while reducing their dependence on US Treasuries as reserve assets. Jain believes this trend reflects a broader shift towards tangible assets amid rising geopolitical and financial uncertainties.
MUST READ: Why Canada and Norway hold zero gold reserves despite global central bank buying
Drawing parallels with past rallies
Jain compared current market conditions with the 2008-2011 gold rally, when prices witnessed a sharp correction before rebounding strongly.
He said gold currently appears to be in an oversold phase similar to that earlier period, while the underlying macroeconomic drivers remain supportive. In his view, investors who are waiting for the "perfect" time to enter the market may miss the opportunity to build long-term exposure.
Present prices
On July 24, 2026, gold discounts in India widened to their highest level in seven weeks as demand remained subdued after a rebound in domestic prices earlier this week discouraged buyers. Although local gold prices eased to around ₹1,41,800 per 10 grams from this week's peak of ₹1,46,000, buying interest remained weak in India, while demand improved in China.
MUST READ: Robert Kiyosaki says the biggest wealth transfer has begun. Should investors pay attention?
On Friday, gold prices extended their decline in futures trade. The August contract on the Multi Commodity Exchange (MCX) fell ₹849, or 0.59%, to ₹1,41,972 per 10 grams, weighed down by sluggish spot demand. In the international market, gold futures slipped 0.47% to $4,030.29 per ounce.
Global gold prices also corrected sharply after reaching a two-week high in the previous session. Spot gold fell more than 2% to around $4,043 per ounce during US trading after touching its highest level since July 7 earlier in the day. Silver mirrored the weakness, with spot prices declining nearly 4%.
Market analysts attributed the sell-off to changing expectations around monetary policy rather than an easing of geopolitical tensions. Rising crude oil prices have heightened inflation concerns, leading investors to anticipate that central banks could maintain tighter interest rate policies for longer. The move underscored how interest rate and inflation expectations can outweigh gold's traditional appeal as a safe-haven asset.
Gold up and down
Gold has had a highly volatile 2026, surging to record highs above US$5,500 an ounce early in the year before tumbling below US$4,000 by late June. Despite being down around 7% year-to-date, the World Gold Council says the precious metal remains one of the best-performing assets over the past year, with its next move likely to depend on economic growth, inflation, interest rate expectations and geopolitical developments. While gold could remain range-bound in the near term, a worsening economic outlook or renewed geopolitical tensions could trigger another rally, whereas stronger growth and higher bond yields may keep prices under pressure.
Gold investment: Gold should not be viewed like a stock that investors buy and sell based on short-term price movements. Instead, it should be treated as a long-term portfolio allocation that investors build over time, according to Alok Jain, Founder of Weekend Investing.
In a recent market commentary, Jain argued that despite gold's strong rally over the past few years, the precious metal still presents what he described as a "once in a decade opportunity" for investors looking to strengthen their portfolios against macroeconomic risks. However, he stressed that accumulating gold is fundamentally different from averaging down on equities.
Gold is an allocation, not a trade
Jain said investors often make the mistake of treating gold like an equity investment, attempting to time purchases based on short-term price movements.
"Gold is an allocation. You have to accumulate it at every point until you reach your desired allocation," he said. By contrast, averaging down on individual stocks carries much higher risks because a company's fundamentals can deteriorate permanently. "A stock could be averaging down and it never comes back," he noted.
According to Jain, investors should therefore view gold as a strategic asset rather than a tactical trade. The objective is not to maximise returns from every purchase but to gradually build exposure that can help diversify a portfolio during periods of economic uncertainty.
MUST READ: Gold, silver prices today (July 24): Check latest rates in Delhi, Mumbai, Kolkata, other cities
Why experts are bullish
Jain believes the long-term case for gold remains intact because the global macroeconomic backdrop continues to favour real assets.
He pointed to rising sovereign debt levels across major economies, arguing that governments have become increasingly dependent on borrowing to finance spending. According to him, the growing debt burden, persistent fiscal deficits and an expanding interest payment obligation raise questions about the sustainability of the current monetary system.
He also highlighted continued purchases of gold by central banks, saying official institutions are still increasing their gold holdings while reducing their dependence on US Treasuries as reserve assets. Jain believes this trend reflects a broader shift towards tangible assets amid rising geopolitical and financial uncertainties.
MUST READ: Why Canada and Norway hold zero gold reserves despite global central bank buying
Drawing parallels with past rallies
Jain compared current market conditions with the 2008-2011 gold rally, when prices witnessed a sharp correction before rebounding strongly.
He said gold currently appears to be in an oversold phase similar to that earlier period, while the underlying macroeconomic drivers remain supportive. In his view, investors who are waiting for the "perfect" time to enter the market may miss the opportunity to build long-term exposure.
Present prices
On July 24, 2026, gold discounts in India widened to their highest level in seven weeks as demand remained subdued after a rebound in domestic prices earlier this week discouraged buyers. Although local gold prices eased to around ₹1,41,800 per 10 grams from this week's peak of ₹1,46,000, buying interest remained weak in India, while demand improved in China.
MUST READ: Robert Kiyosaki says the biggest wealth transfer has begun. Should investors pay attention?
On Friday, gold prices extended their decline in futures trade. The August contract on the Multi Commodity Exchange (MCX) fell ₹849, or 0.59%, to ₹1,41,972 per 10 grams, weighed down by sluggish spot demand. In the international market, gold futures slipped 0.47% to $4,030.29 per ounce.
Global gold prices also corrected sharply after reaching a two-week high in the previous session. Spot gold fell more than 2% to around $4,043 per ounce during US trading after touching its highest level since July 7 earlier in the day. Silver mirrored the weakness, with spot prices declining nearly 4%.
Market analysts attributed the sell-off to changing expectations around monetary policy rather than an easing of geopolitical tensions. Rising crude oil prices have heightened inflation concerns, leading investors to anticipate that central banks could maintain tighter interest rate policies for longer. The move underscored how interest rate and inflation expectations can outweigh gold's traditional appeal as a safe-haven asset.
Gold up and down
Gold has had a highly volatile 2026, surging to record highs above US$5,500 an ounce early in the year before tumbling below US$4,000 by late June. Despite being down around 7% year-to-date, the World Gold Council says the precious metal remains one of the best-performing assets over the past year, with its next move likely to depend on economic growth, inflation, interest rate expectations and geopolitical developments. While gold could remain range-bound in the near term, a worsening economic outlook or renewed geopolitical tensions could trigger another rally, whereas stronger growth and higher bond yields may keep prices under pressure.