In uncertain times, one investment that continues to shine quite literally is gold. Whether it’s rising inflation, stock market volatility, or global tensions, buying gold has consistently proven itself as a safe and reliable store of value.
For generations, Indians have trusted gold not just as a symbol of prosperity but also as a long-term financial security blanket. From festive purchases to strategic investments, it plays a vital role in every household’s wealth plan.
In 2025, as global economies struggle with fluctuating currencies and unpredictable markets, gold prices have reached historic highs, reminding everyone why buying gold remains one of the smartest investment choices anyone can make.
Let’s explore why gold stands tall as a timeless investment, current market trends, and how you can make the most of it in today’s economy.
Why Many Regard Buying Gold as a Top Investment
Here are key reasons why gold is often considered a great investment:
- Store of Value/Inflation Hedge
Gold has historically maintained purchasing power over long periods. When fiat currencies lose value due to inflation, gold tends to hold or increase in value. - Safe Haven in Turbulent Times
During economic crises, stock crashes, currency devaluation, or geopolitical turmoil, investors often flock to gold as a “safe asset.” - Portfolio Diversification
Gold often behaves differently from equities and bonds. In downturns, when stocks fall, gold’s negative or low correlation helps cushion overall portfolio losses. - Limited Supply, Global Demand
Gold is rare and costly to mine. With central banks, investors, and jewelry demand globally, scarcity helps maintain value. - Cultural & Psychological Appeal (Particularly in India/Asia)
In countries like India, gold is deeply embedded in tradition: weddings, festivals, gifts. This cultural demand helps sustain a baseline consumption irrespective of market cycles. - Liquidity
Gold (in bullion, coins, or recognized instruments) is fairly liquid one can sell at or near market rates in many places.
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Current Gold Rates & Recent Trends (as of October 2025)
Let’s look at what gold is trading at now, especially in India/Chennai, and how it has moved recently.
Today’s Prices (India/Chennai)
- In Chennai, 24K gold is about ₹12,218 per gram, and 22K gold is ~ ₹11,200 per gram.
- On a national level, 24K is ~ ₹11,864 per gram, 22K is ~ ₹10,875 per gram, and 18K ~ ₹8,898 per gram (these are indicative national averages)
- On commodity exchanges: MCX (Multi Commodity Exchange India) futures contracts recently touched ₹1,20,900 per 10 grams for gold.
These prices exclude additional making charges, mark-ups, local taxes, etc., which apply when buying jewelry.
Recent Jumps & Records
- On October 8, 2025, gold futures on MCX hit a record ₹1,22,101 per 10 g (a single-day gain of ~ ₹819)
- On October 6, 2025, gold jumped ~ ₹3,000 per 10g, crossing ₹1.19 lakh.
- Over 2025, gold has seen a rally of over 50% year-to-date in some markets, as investors flock to safe-havens amid macro uncertainty.
Historical Trend (India)
To understand the power of compounding and long-term holding, check these historical data points:
| Year | 24K Gold Price (per 10 g) | Notes / Approx |
|---|---|---|
| 1964 | ₹63.25 | Source: historical compendium |
| 1980 | ~ ₹1,330 | A 21-fold rise over ~16 years |
| 2000s to 2020s | Huge multiple growth | Forbes India charts show gold outpacing or keeping pace with equities over 25 years. |
| 2019–2024 | Annualized returns ~8-12% for gold funds in India |
From ₹63.25 in 1964 to ~ ₹1,20,000+ (for 10 g) in 2025 is a staggering growth over decades (though with fluctuations).
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How & When to Buy Gold: Modes & Strategies
Buying “gold” doesn’t always mean a jewelry store. Here are methods and strategies:
Modes/Instruments
- Physical Gold (Jewelry, Bars, Coins)
You own tangible gold. But you incur making charges, purity markups, storage risks, theft risk, resale slippage. - Gold ETFs/Gold (Paper) Funds
Exchange-traded funds that track gold prices. You avoid physical storage, pay small fund expenses, and can trade via your brokerage. - Gold Index Funds/Mutual Funds
These invest in gold ETFs or gold derivatives. Good for those comfortable in mutual fund space. - Sovereign Gold Bonds (SGBs)
Issued by governments, denominated in grams of gold, and often pay periodic interest. - Gold Loans/Gold-backed Lending
Use your existing gold as collateral to borrow at relatively lower interest rates.
Timing & Strategy Tips
- Rupee Weakness as Buy Signal
Gold is priced globally in USD. When the Indian rupee weakens, domestic gold becomes relatively cheaper to import, pushing prices up. - Buy in Phases/Averaging
Avoid trying to time the peak. Use rupee cost averaging buy small amounts over time. - Festival/Seasonal Discounts
In India, during certain festivals or ‘gold days’, jewelers sometimes offer lower making charges or promotions. - Hold Long-Term
Gold is less about short-term gains and more about preservation and security over decades. - Keep Some Liquidity/Exit Plan
Know when to sell (e.g., when gold has outpaced your target, or when better investment opportunities emerge).
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Pros and Cons of Gold Investment
No investment is perfect. Here’s a balanced view:
Pros
- Preserves wealth against inflation
- Acts as a hedge in times of crisis
- Diversifies portfolio risk
- Highly liquid in many markets
- No counterparty risk (in physical form)
- Culturally accepted as “trusted” asset
Cons/Risks
- No passive income (unless interest-bearing SGBs)
- High transaction/making charges
- Storage, insurance, and security costs
- Purity/fraud risk in unverified sellers
- Price volatility in short term
- Opportunity cost (if equities or business yield more)
- Tax/capital gains challenges
Also Read: Digital Gold
When Gold “Wins” & When It Doesn’t
Gold excels in:
- Times of high inflation
- Geopolitical or economic turmoil
- Currency depreciation
- As a stabilizer (when stocks crash)
Gold may lag when:
- Global growth is strong and capital flows into equities
- Interest rates are high (making debt instruments more attractive)
- There is a strong bull run in business / technology stocks
Conclusion
The statement “Best Investment One Can Make Is Buying Gold” holds weight especially for those seeking safety, wealth preservation, and a hedge in volatile times. Over decades, gold has proven its mettle. Yet, it’s not a one-size-fits-all solution. A balanced portfolio will typically include equities, fixed income, real assets, and a slice of gold.
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