Gold prices have been hitting new highs every other day. Last week, the yellow metal prices hit ₹1,06,289 (per 10 gms), and today they touched ₹ 1.07 lakh, leading to 35 per cent jump in prices year to date (YTD).
Gold prices have advanced 3.82 per cent for the week, marking their third consecutive weekly gain, SS WealthStreet founder Sugandha Sachdeva told Livemint.
So, is this the right time to buy the yellow metal? Let us find out.
Safe and secure
Gold is one of the safest and most secure assets to invest in. In the long run, it tends to deliver positive returns. Some time ago, Zerodha co-founder Nikhil Kamath shared a data point on LinkedIn, where he pointed out that gold outperformed equities globally in the past 24 months, whereas it’s only in India that the reverse is true, i.e., equities outperformed gold.
The post had also mentioned that gold is 50 per cent less volatile than Indian stocks and offers better downside risk-adjusted returns. Additionally, in every major Indian equity crash, gold gained 10-30 per cent.
Asset allocation is key
Those who have already earned gains by investing in gold bought at the right time but those who have yet not invested should consider gold allocation in their portfolio before deciding to invest.
“We believe the answer lies in your asset allocation – if you bought gold as part of that and currently that allocation is hitting the threshold, you may book some profit. However, any drastic portfolio moves solely based on this rally don’t make sense. Gold, more than the returns, plays a crucial role in portfolio diversification and as a hedge against economic uncertainty. Therefore, rebalancing rather than a full exit or buying aggressively makes more sense,” says Siddharth Alok, AVP Investments, Epsilon Money.
Where can you find gold to invest?
You can invest in gold by buying gold ETFs, gold bonds or physical gold. Financial experts generally tell investors to refrain from investing in physical gold since it leads to making charges and locker costs.
Therefore, it is recommended to invest in digital gold.
1. Gold funds/FOF: One could buy units of gold mutual funds or fund of funds. Some of the gold mutual funds include Aditya Birla Sun Life Gold Fund, Axis Gold Fund and HDFC Gold ETF Fund of Fund.
According to the latest AMFI data as of 31 July 2025, there are 21 gold ETF mutual funds with a total assets under management of ₹67,000 crore.
2. Gold bonds: To buy sovereign gold bonds, you can apply online through the website of a commercial bank such as SBI.