Investors should use correction to build exposure to gold: Analysts

Your portfolio needs a hedge against the risks of growth slowdown and inflation

Gold closed at Rs 46,339 per 10 grams on Monday. Its one-year return is currently minus 17.1 per cent. If one examines the one-year return rolled daily over the past 15 years, the lowest one-year return was minus 17.6 per cent on November 14, 2014. Gold is almost at par with that mark.

Investor sentiment towards an asset class tends to be affected by past returns. With returns appearing bleak, should you avoid the yellow metal, or make a contrarian bet?

The question assumes immediate significance for investors planning to invest in the fifth tranche of sovereign gold bonds, open for subscription