Is Gold Still a Good Investment in India?
Gold has always held a special place in Indian culture. Whether it’s a wedding, a festival, or a gift for a newborn, gold has symbolized wealth, prosperity, and security. But in today’s time—when there are so many new investment options like mutual funds, stocks, and digital assets—is gold still a good investment in India?
Let’s explore this in simple terms.
🔍 Why Do Indians Invest in Gold?
There are three major reasons:
- Cultural Value – Gold is deeply linked to our traditions and festivals like Diwali, Dhanteras, and Akshaya Tritiya.
- Safety Net – In uncertain times (like during inflation or a crisis), gold holds its value.
- Liquidity – Gold is easy to sell or use as collateral for loans.
📈 How Has Gold Performed Over the Years?
If you look at the past 10-15 years, gold prices in India have steadily increased. For example:
- In 2010, 10 grams of gold cost around ₹18,000.
- In 2024, it was over ₹60,000.
That’s more than 3x growth in about 14 years—not bad!
But remember: gold prices can also stay flat for a few years. So it’s not a “get rich quick” option.
🟡 Types of Gold Investments in India
You don’t always need to buy physical gold. Here are the different ways to invest in gold:
- Physical Gold – Jewellery, coins, bars. Easy to buy but comes with making charges and storage risks.
- Gold ETFs (Exchange Traded Funds) – You invest in gold like a stock, no need to hold physical gold.
- Sovereign Gold Bonds (SGBs) – Issued by the government, gives 2.5% annual interest + gold price returns.
- Digital Gold – Buy gold online in small quantities. Can convert to jewellery later.
- Gold Mutual Funds – Invests in gold-related assets and gives returns based on market price.
✅ Advantages of Investing in Gold
- Safe during inflation – Gold usually does well when the economy is shaky.
- Diversification – It balances out your risk if you have stocks or real estate.
- Long-term value – It doesn’t lose its shine—literally and financially.
❌ Disadvantages to Consider
- No regular income – Unlike stocks or fixed deposits, gold doesn’t give monthly income.
- Price fluctuations – Short-term gains are not guaranteed.
- Making/storage costs – Especially with physical gold.
- Tax on profits – Capital gains tax applies if you sell it for a profit.
Read More:https://wealthfitlife.com/best-10-investment-options-for-salaried-employees-in-india/
🧐 So, Is Gold Still a Good Investment in 2025?
Yes—but with a balanced approach.
Gold remains a good long-term investment and a safety asset. But it should not be your only investment. Financial experts suggest keeping 5-15% of your portfolio in gold, depending on your risk appetite.
💡 Best Ways to Invest in Gold in 2025 (India)
| Investment Type | Best For | Risk Level | Liquidity |
|---|---|---|---|
| Physical Gold | Tradition, jewellery use | Low | High |
| Sovereign Gold Bonds | Long-term investors | Low | Moderate |
| Gold ETFs / Mutual Funds | Modern investors | Medium | High |
| Digital Gold | Small investors | Medium | High |
🧾 Conclusion
Gold continues to be a trusted and valuable investment for Indian investors, especially during economic uncertainty. While it’s not the most high-return asset, it acts as a financial cushion. The key is to invest in gold smartly and in moderation, preferably through digital or government-backed options.
❓ Top 10 FAQs About Gold Investment in India
1. How much gold should I have in my portfolio?
Experts suggest keeping 5–15% of your total investment in gold.
2. Is buying gold better than investing in mutual funds?
Both serve different purposes—gold for safety, mutual funds for growth.
3. Are Sovereign Gold Bonds (SGBs) safe?
Yes, they are issued by the Government of India and offer fixed interest.
4. Can I buy gold online in India?
Yes, through platforms like Paytm, PhonePe, and Groww (Digital Gold).
5. Is gold investment tax-free in India?
No. Profits from selling gold are taxed under capital gains rules.
6. Does gold give monthly income?
No, except for SGBs, which pay 2.5% interest yearly.
7. Which is better: Gold ETF or Physical Gold?
Gold ETFs are better for investment; physical gold is better for personal use.
8. Can I take a loan against gold?
Yes, many banks and NBFCs offer gold loans at attractive interest rates.
9. Is gold a good investment for short-term?
Gold is better for long-term wealth protection, not quick gains.
10. What is the minimum amount to invest in Digital Gold?
You can start with as little as ₹10 in most apps.
