Gold prices have been hard to ignore lately. After months of strong gains, it’s natural to wonder why your equity investments have struggled in 2025 while gold seems to be racing ahead. For many households, this has triggered a familiar question: Shouldn’t we be investing more in gold instead?

Before reacting, it helps to understand why gold has gone up.

Why Gold Prices Have Risen

Gold is traditionally a hedge during periods of geopolitical and economic tension. Over the past few years, the world has seen elevated uncertainty due to wars, trade tensions, and shifting global economic dynamics. During such times, central banks across several countries have increased their allocation to gold as part of their reserves, which has contributed to the steady rise in prices over the last few years.

With institutional investors also increasing their exposure to gold amid concerns about currency movements, inflation, and global stability, prices have risen sharply in recent months.

Should You Join the Gold Rally Now?

Understanding the reasons behind the rise can easily lead to FOMO. But the real question is: what happens next?

It’s possible that some of these forces remain in play for several more years, allowing the gold trend to continue. But it’s equally possible that prices mean-revert, move sideways, or correct sharply as global conditions evolve. Changes in economic policies, interest rates, currency movements, and geopolitical stability can all influence gold prices over time.

Even as we were drafting this, gold prices saw a sudden dip on 30th Jan 2026 following global market reactions to policy developments in the US. Whether this turns out to be a temporary dip or the start of a broader correction is impossible to know in real time.

What Should an Investor Do?

The basic rules of investing haven’t changed.

No one can reliably predict global events or time asset-class cycles. This is not the moment to abandon equities or concentrate your portfolio entirely in gold, no matter how tempting that feels. No one consistently times bottoms or tops for any asset class.

That is why asset allocation matters.

At Fin & Me, we believe, the right allocation is one that lets you sleep well at night and stick to your plan. For some investors, that may even mean 0% gold, if they are content investing in equities and debt asset classes, both with something underlying the investment, unlike gold which is purely speculative and sensitive to geopolitics. This is perfectly fine if it aligns with their goals and temperament.

But for others who feel they would like some exposure to gold, if you still do want to add gold now, Fin & Me recommends that you do it thoughtfully:

• Keep the allocation modest
• Invest for long-term goals only
• Be prepared to stay invested even if prices fall or go nowhere for years

Only if you are comfortable with that does investing in gold make sense.

Because FOMO is not a strategy. More often than not, it turns into FOBI: fear of being invested; at exactly the wrong time.

Discipline beats drama. Always.