Gold Bonds

The gold and silver market is very volatile, so diversifying bonds is a very good idea for risk reduction, but over-diversifying can reduce fixed income stability and will increase complexity. Before investing, keep these things in mind:

Bonds offer a fixed interest rate, but gold and silver won't (unless you invest in SGBs).

Gold is still a safe option, but silver's price fluctuates a lot because of industrial demands. This all will create more price fluctuations in your overall portfolio.

When you sell gold and silver, there is a capital gains tax, which is different from the bond taxation system.

If your primary goal is stability and income, then you should rethink investing this much in gold and silver. I suggest you invest in Sovereign Gold Bonds (SGBs) as they are more tax-efficient.

As a long-term investment in gold, SGBs are very beneficial, as they offer a fixed interest rate of 2.5% annually, and tax-free capital gains are at maturity (after 8 years), which is anyway a better option than physical gold.

SGBAnalyzer's alerts are actually very useful for tracking discounts, premiums, price fluctuations, volatile market trends, and many more.

For so many, SGBs have proven to be a beneficial investments. This is a long run investment, and they give a consistent return and good protection against inflation. You can combine SGBs as a part of a diversified portfolio.

I have not invested in SGBs yet, but I would invest a moderate portion, around 10% of my investment portfolio.