In fact there is an issue of sovereign gold bonds that is opening on Monday 07 October itself. The issue will be open from 07th to 11th but there will be a holiday in between, so you will have to plan accordingly. The sovereign gold bonds are being issued at the price of Rrs.3788/gram and the bonds will be allotted on October 15th. In case of investors applying online, there will be a discount of Rs.50/gram for investors. The bond will be a period of 8 years with an exit option after the fifth year. The bonds will continue to earn 2.5% interest.

Your investment in gold should be based on the exposure to gold in your portfolio. An allocation of 10-15% is ideal. In the current scenario, you can look at an allocation of 15% to gold and if it is already more than that then you should not add on gold. But gold does look good as an asset class if you consider the current uncertainty in the market which is normally conducive to gold prices.