In India, gold has always held a special place. It is not just a traditional ornament but also a trusted form of investment. Recently, though, the price of gold has gone up sharply. In just four months, gold prices have jumped by INR 19,000. On Akshaya Tritiya (30 April 2025), the price of 10 grams of gold touched INR 1 lakh. With prices rising steadily, the big question now is — is gold a good investment right now, and should you buy gold now? Read on to know more.
Here are a few key reasons behind the recent price rally.
The global economy is under stress. There are fears of a recession, slow growth, and rising trade tensions. During such uncertain times, investors often look for safer options like gold, which holds value when markets become unpredictable.
Since the pandemic in 2020, demand for gold has remained strong. People continue to buy gold for jewellery, investment, and even for industrial use. In 2024, total demand reached 4,974 tonnes, worth 382 billion dollars.
Many central banks are increasing their gold reserves. They are also bringing gold back into their own countries. Earlier, nations like India and the US stored gold in the Bank of England. Now, they are shifting it to their own vaults for better control.
Even after this price surge, gold is still useful for a balanced portfolio. However, experts suggest that gold should not be your main investment. A good rule is to keep gold at around 3 to 4 percent of your total investments. Gold helps protect your money during market ups and downs without hurting overall returns.
Gold mutual funds invest in gold ETFs, physical gold, and shares of companies involved in gold mining. You can easily invest in gold SIP through the Tata Capital Moneyfy app-
- Download the Tata Capital Moneyfy app
- Complete your registration and KYC
- Search for Gold ETF FoFs (Fund of Funds) to view the top options
- Start an SIP.
To get started, visit the Tata Capital Moneyfy website or download the Moneyfy app today.