Gold Prices Near Record Highs: How Indians Can Invest Wisely In 2025
While there are several ways to invest in gold, from physical bullion to digital options, the key is choosing a type and approach that fits your goals.
Indians have long trusted gold as an investment. It provides stability, holds cultural value, and shields against inflation. However, lately, with growing global uncertainty, gold is attracting greater attention as a safe haven, something that is reflected in its rising prices.
As of October 8, 2025, gold prices rose from the previous day, with 24-carat at Rs 12,393 per gram (+₹191), 22-carat at Rs 11,360 (+₹175), and 18-carat at Rs 9,295 (+₹143).
With gold trading near record highs, many investors are wondering whether to buy, hold their investment, or wait to invest? While there are several ways to invest in gold, from physical bullion to digital options, the key is choosing a type and approach that fits your goals. So, here’s a quick guide to the main options and how to use them wisely.
Digital gold
Digital gold is essentially gold that can be bought online via apps and investment platforms. The gold is stored securely in a vault, and you can sell or request delivery anytime. It's convenient, but it is crucial to stick to trusted platforms backed by established, credible partners. This type of gold investment is best suited for short-term savings or small investments.
Gold mutual funds
These funds invest in gold ETFs and related assets. You can start small, with a systematic investment plan (SIP) as low as Rs 1000, without a demat account. These funds are professionally managed, making them ideal if you prefer a hands-off approach. They are great for diversification as they combine the ease of mutual funds with exposure to gold.
Gold ETFs
Gold ETFs let you invest in gold without holding it physically. They track domestic gold prices and trade on stock exchanges, with one unit equal to one gram of gold. They’re liquid, easy to trade, and free from concerns about purity or storage. All you need is a demat account. For investors seeking convenience and short-to-medium term exposure to gold, they are an ideal option.
Sovereign Gold Bonds (SGBs)
These government-backed bonds offered an annual interest of 2.5 per cent and with tax-free capital gains if held until the 8-year maturity. However, in the 2025 Budget, fresh SGB issuances were stopped, affecting their accessibility. You can still buy existing SGBs on the secondary market through your demat/trading account, but check the remaining tenure before investing.
Physical gold
Jewellery, coins, and bars are the most familiar form of physical gold. Because it is tangible, they carry sentimental value and can be used as collateral for loans. But physical gold comes with costs. Jewellery making charges aren't recoverable, and storage has its own risks and expenses. If you’re buying physical gold, do so from a trusted jeweller and ensure it is hallmarked 24-carat gold. Also, coins and bars typically have better resale value than jewellery.
Investing strategy when gold prices peak
At current prices, a staggered and slow approach may be ideal. While gold is still a valuable hedge, it may not deliver strong returns in the near term from these levels. For most investors, a 5-10 per cent exposure in gold may be recommended.
On the other hand, if you're already invested, continue holding. During volatile markets, gold can steady your portfolio. If you’re a new investor, build your investment slowly and gradually via avenues like SIPs in gold mutual funds or ETFs, instead of investing a lump sum at once.
Gold is best for protecting wealth rather than for quick growth. It holds value when markets are shaky, so approaching it strategically rather than emotionally helps it strengthen your portfolio.
(The author is the CEO at BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar)
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