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That's not just a blip. Domestic gold prices have soared over 55% this year, driven by a perfect mix of global uncertainty, rate cut expectations, and relentless central bank buying. Which brings us to the big investor question, if gold is already shining this bright, how much of it should actually sit in your portfolio? Most wealth advisors recommend that investors allocate some portion of their portfolio to precious metals. Billionaire investor and Bridgewater Associates founder Ray Dalio recently suggested that investors should allocate up to 15% of their portfolios to gold. What's fueling the rally The metal has been the go-to haven as fears of a US government shutdown, global conflicts, and inflation keep investors uneasy. Central banks, especially in emerging markets, have been piling up gold since 2022, aiming to reduce dependence on the US dollar after sanctions on Russia froze its reserves. Meanwhile, gold ETFs have seen heavy inflows, and expectations of rate cuts from the US Federal Reserve are making non-yielding assets like gold more attractive. Put together, this demand surge has created a powerful rally, but also a dilemma: Is it too late to buy? What the experts say Riya Singh, Research Analyst, Currency & Commodities, Emkay Global Financial Services, suggests moderation, not mania. "Allocating between 5% and 15%, split between physical gold and gold-related investments, can provide a hedge against inflation, market volatility, and geopolitical uncertainty." She adds that even without Sovereign Gold Bonds currently open, physical gold and gold ETFs remain strong wealth-preserving tools. Jashan Arora, Director at Master Trust Group, agrees that gold's role is about balance, not returns. "Precious metals such as gold and silver should ideally comprise 10-15% of an investor's portfolio. This allocation strikes a balance between stability and growth potential." According to Arora, gold offers a protective cushion during turbulent times while still benefiting from global demand trends. Nilesh D. Naik, Head of Investment Products, Share.Market (PhonePe Wealth), cautions investors not to be swayed by headlines. "Gold prices have surged more than 20% since mid-August and are up over 57% year-to-date. But investors shouldn't go overboard," he notes. Naik recommends an asset allocation approach, keeping gold exposure around 10%. While gold's correlation with equities is low, he reminds that it's still a volatile asset, and recent momentum could cool if central bank buying eases. Ram Medury, Founder & CEO, Maxiom Wealth, says, "A sensible gold allocation typically ranges between 5-12%, depending on your financial goals and risk appetite. The goal isn't to chase gold's momentum, but to let it play its natural role as a hedge and portfolio stabiliser protecting against inflation, volatility, and systemic shocks." Meanwhile, Dishi Somani, founder of DishiS Designer Jewellery, recommends investing around 10% in gold helps investors stay protected without risking too much capital. The Goldilocks principle Conservative: If you're under 5% in gold, you're missing a diversification hedge. Aggressive: If you're above 15%, you're taking on unnecessary risk at record valuations. Moderate: If you're between 10-15%, you're right where most experts think you should be. Gold protects against inflation and currency depreciation, but it's not a growth driver like equities or businesses. Think of it as a financial seatbelt, not the engine of your wealth. To sum up, with gold prices at record highs, temptations get higher, but discipline matters more than ever. Experts, therefore, suggest that investors should keep allocation to gold anywhere between 10 to 15% of their overall portfolio, split smartly between ETFs, coins, and digital gold.