Would you invest in gold in 2025?
Gold has been a ‘safe haven’ investment for a long time. Historically, the element has presented itself as a symbol of wealth, security, and, indeed, financial security. Yet, all these factors put together make one wonder-today, in light of the continuing economic changes and rising inflation, the world is threatened by conflicts, and the market is somewhat volatile; is gold investment still a good investment choice in 2025?
Let’s check whether gold is still a good investment in 2025.
Gold is the investment that has been utilized for centuries; what is making it relevant at this time?
- 🛡️ Safe Haven Asset: It holds good value in uncertain economic times.
- 💸 Hedge from Inflation: In general, gold rises with price increases.
- 📉 Making the Market Safe: Provides safety when stock markets take a hit.
- 🔄 Liquidity: Gold acts as an international currency by being as good as cash in trade.
- 📊 Portfolio diversification adds balance and minimizes your total risk.
Economic conditions in 2025 will make it a good time to bet on gold this year.
- Rising Inflation: Inflation is still on everyone’s lips in 2025.
- Assurance of Global Uncertainty: The chief reasons pushing investors toward safe-haven assets are ‘geopolitical tensions’ and war risks.
- Currency Volatility: Given the value lost by fiat-based currencies, gold stands strong in trading among countries.
- Central Bank Buying: Central banks worldwide, from India to China, are busy buying gold to bolster their reserves.
Also read: How to Identify Real Gold?
These points make gold a bullish outlook price within the year.
Trend of Gold Price from 2020 to 2025
Year Average Gold Price (INR per 10g)
2020 ₹48,500
2021 ₹47,200
2022 ₹51,000
2023 ₹56,800
2024 ₹63,200
2025 (est.) ₹68,000-72,000
A continuing increase in the gold price reflects the long-term growth of and confidence in the investment.
Reasons for Buying Gold in 2025
- Positive Market Sentiment
With economic uncertainties surrounding him, gold remains the favorite among investors.
- Liquidity and High Demand
Very easy to sell or pledge during emergencies or even during festive seasons.
- A Lot of Investment Avenues
- Physical gold (jewelry, coins, bars)
- Digital gold
- Gold ETF
- Sovereign gold bond (SGB)
- No Capital Gains Tax on SGB for Holding Until Maturity (8 years)
⚠️ Risk Consideration
- Price Volatility in the Short Term: Movements in worth with global events cause fluctuations in dollar rates and interest rates.
- No Regular Income: Gold does not offer dividends or interest returns like stocks or mutual funds.
- Making Charges & GST: Jewelry comes with added costs not adding to the worth of investment.
Who is supposed to invest in gold in 2025?
- Long-term investors are looking for stability.
- Those who look into hedging against inflation.
- Those diversifying their portfolio.
- Conservative investors are looking for safety.
Not for:
- People looking for high short-term returns.
- Investors who like to receive passive income.
The expert view is, “Gold in the year 2025 will remain a very important instrument for wealth preservation. Gold therefore has to be one of several investments in a well-managed portfolio, ideally comprising 10-15% of the entire portfolio holding; Financial Analyst MorningStar India.
How Much to Invest?
Experts suggest that investors allocate 10-15% of their total investment portfolio to gold. The best combination is a mix of SGBs, gold ETFs, and a small amount of physical gold.
Is gold a good investment in 2025?
Yes, gold will still be a smart and safe investment in 2025, especially in a well-balanced portfolio. It may not substitute any equity or mutual fund investment but gives protection against market instability, inflation, and currency risk.
Gold Price in Delhi Today (April 11, 2025): Latest 22K & 24K Gold Rates
