Gold prices in India have reached historic highs above ₹1.49 lakh, with the MCX December contract at ₹1,49,610 per 10 grams and the Indian Bullion and Jewellers Association rate for 24-carat gold at ₹1,49,430. According to latest reports, this represents a significant surge from previous levels, with the MCX contract rising ₹1,893 per 10 grams in Friday's trading session. The immediate market significance is that bullion has become expensive enough to change buying behavior, particularly in a market where retail consumers tend to step in on dips and jewelers closely track exchange and wholesale benchmarks. Recent global developments support this trend, with gold prices reaching record highs of over $5,500 per troy ounce in January before retreating, though they remain at historically elevated levels.
There are three popular ways of investing in gold: traditional buyers usually opt for gold jewellery or bars, while new investors may prefer digital exchange traded funds (ETFs). As reported by NDTV Profit, gold bonds, once highly popular, have been discontinued by the government, leading investors with no choice to make fresh investments in that area. Many lenders and online platforms also promote their 'digital gold' offerings, but buyers should be aware that these products are not regulated by SEBI or the RBI, which can expose them to additional risks.
Jewellery purchases attract 3% GST, along with making charges that can significantly increase your final bill. According to NDTV Profit, gold bars and coins also attract 3% GST but typically do not involve jewellery-making charges. The choice should depend on whether you are investing for potential returns or buying gold jewellery for personal use and festive occasions. Note: Jewellery is typically made of 22-karat or 18-karat gold, while bars and coins are made of 24-karat gold.
Gold exchange-traded funds allow investors to gain exposure to gold prices without physically holding the metal. As reported by NDTV Profit, 1 unit of Gold ETF = 1 gram of gold. However, ETFs can be costlier than expected due to expense ratios, brokerage fees, etc. Investors should compare these charges before investing, as ETFs eliminate making charges and physical storage concerns, but they also come with fund management expenses.
Investors and industry executives expect gold prices to climb to fresh record highs within the next 24 months, according to forecasts from the Financial Times. Charlotte Yonge from Troy Asset Management expects gold to reach new record highs within 12 to 18 months, citing gold as a hedge against deteriorating government finances and rising US debt. Paul Carne from Aon Investments also expects fresh highs within two years, pointing to US policymaking and dollar geopolitical concerns as factors encouraging countries to seek alternatives to the American currency. Central bank gold purchases reached their highest monthly level since November 2024, with about 63 tonnes of buying in September alone, as reported by the World Gold Council. The bullish outlook is supported by continued central bank buying and demand for safe-haven assets, though predictions remain forecasts rather than guarantees.
