Gold prices have crossed the ₹1 lakh mark per 10 grams in 2025, rising by 25.42% since the start of the year.
The sharp increase is mainly due to global tensions like the Iran-Israel conflict and economic uncertainty related to US tariff policies.
On June 16, gold hit a record high of ₹1,01,078 per 10 grams on the Multi Commodity Exchange (MCX), confirming its role as a safe-haven asset during market volatility.
Market Outlook: What Could Drive Gold Higher
Rahul Kalantri, VP of Commodities at Mehta Equities, said that if the US doesn’t finalize a trade deal by July 9, it could trigger more market uncertainty—possibly pushing gold prices even higher.
Key Question: How to Invest in Gold Smartly?
According to investment strategist Raju Singh, the big question now isn’t whether to invest in gold—but how to invest smartly. Gold has delivered a 35% return in 2025, but returns alone don’t guarantee a smart investment. The method matters just as much.
Experts Recommend: Choose ETFs and Mutual Funds Over Physical Gold
Experts suggest avoiding physical gold and digital gold for investment purposes. Instead, they recommend gold ETFs and gold mutual funds, which offer:
Low cost
High liquidity
Regulatory safety
Top Investment Options in Gold
Gold ETFs:
SBI Gold ETF
ICICI Prudential Gold ETF
Kotak Gold ETF
HDFC Gold ETF
Gold Mutual Funds:
Nippon India Gold Savings Fund
SBI Gold Fund
LIC MF Gold ETF FOF
Comparison: Which Gold Option is Best for You?
| Aspect | Physical Gold | Digital Gold | Gold ETFs | Gold Mutual Funds |
|---|---|---|---|---|
| Cost | High (10–20% loss + 3% GST) | 5% premium + GST | Lowest (0.5–1% expense) | Slightly higher (0.6–1.5%) |
| Risk & Regulation | Risk of theft, purity issues | Not SEBI-regulated | Fully regulated | Fully regulated |
| Taxation | LTCG after 3 years | Same as physical gold | LTCG after 12 months | LTCG after 12 months |
| Minimum Investment | ₹10,200 (1g coin) | ₹1 | ₹50–₹100 | ₹100 approx. |
| Liquidity | Low (resale/making charge issues) | Medium (platform dependent) | High (exchange-traded) | High (fund house redemption) |
| Best For | Wearing, not investment | Small, casual buyers | Cost-conscious, serious investors | Those without demat accounts |
Cost and Liquidity: ETFs Offer the Best Deal
The cost of physical gold is the highest due to making charges and GST. Digital gold, while easy to buy, comes with platform-related risks and isn’t regulated by SEBI.
In comparison, gold ETFs are the cheapest and safest, making them ideal for most investors.
Strategy: Keep 10–15% of Portfolio in Gold
Raju Singh advises investors to keep 10–15% of their portfolio in gold. He recommends using Systematic Investment Plans (SIPs) in gold ETFs for steady, long-term investment.
Final Thought: Investment Method Matters in 2025
With rising gold prices, ongoing geopolitical tension, and global market shifts, gold remains a powerful investment.
But in 2025, how you invest in gold is just as important as when. Choosing the right product and strategy is key to protecting your wealth and ensuring steady returns.
