₹90K to ₹1.06 Lakh: Gold’s New Journey—And How Much You Should Buy Now
Gold Prices Touch Record High—Is It Still a Good Investment?
Gold has been on fire lately. The price of 10 grams of 24-carat gold has crossed ₹1,00,000, making many wonder: Is it too late to buy gold this Akshaya Tritiya?
With festive buying season around the corner, many investors are confused—should they buy gold at these record-high prices, or wait?
Let’s break it down.
What Experts Recommend: Don’t Skip Gold, Just Be Smart
According to Capitalmind Financial Services, you shouldn’t ignore gold even at current prices.
“Portfolios with just a 5–10% allocation to gold often see better risk-adjusted returns than those with only equities,” the firm noted.
That means gold acts as a cushion during volatile markets—making it a solid long-term hedge.
The Power of Balance: Gold + Nifty Beats Both Alone
Here’s a surprising stat: A 50:50 portfolio of gold and the Nifty 50, rebalanced every year, outperformed standalone investments in either over the past 20+ years.
This showcases something called the Lindy Effect—the longer something survives, the more likely it is to continue doing well. Gold fits that bill.
The Risk of Timing: What History Teaches About Buying Gold
The note also shared some hard lessons:
-
In 1980, investors rushed into gold after strong 1970s returns—but then faced 20 years of poor performance.
-
In 2000, investors ignored gold due to weak 1980s and 90s returns—only to miss out on a major rally.
Why Are Gold Prices So High in 2025?
Global Trade Tensions Fuel Demand
The current surge in gold prices is being driven by safe-haven demand, thanks to global uncertainty, particularly from:
-
US tariff threats
-
A weakening Chinese yuan, which recently hit a 19-month low
These factors make gold more attractive to investors globally—and push prices higher.
Gains vs Dollar Gains: What Indian Investors Should Know
Historically, gold prices in INR (Indian Rupees) tracked global gold prices. But post-1991 reforms in India—like trade liberalisation and currency decontrol—have made INR gold prices more market-driven.
So now, if the rupee weakens, gold prices in India can rise even if international prices stay flat.
Gold Outlook for 2025: Still Room to Grow
Analysts believe gold is far from done rising.
For instance, Motilal Oswal Financial Services expects gold to touch ₹1,06,000 in the long term.
“Investors should look to buy on dips near ₹90,000–91,000 for targets around ₹1.06 lakh,” said Manav Modi, senior commodity analyst at MOFSL.
What About Retail Demand? Will People Still Buy?
Here’s the catch: As gold prices shoot up, retail demand might take a hit.
Crisil Ratings Warns of Decline in Jewellery Volumes
A Crisil Ratings study of 60 jewellery retailers found:
-
Retailers saw a 4–5% drop in volume in FY2025 as gold prices rose 25% YoY.
-
With gold prices 20% higher already in April 2025, the pressure on demand is likely to continue.
The festive and wedding season in April cushioned the blow slightly—but many buyers are now sticking to fixed budgets, meaning:
-
Smaller caratage
-
Lower weight purchases
Still, gold import duty cuts announced last year are helping stabilize demand.
How Much Gold Should You Really Buy?
If you’re wondering what to do this Akshaya Tritiya, here’s the golden rule:
Allocate 5–10% of your portfolio to gold—whether through:
-
Physical gold
-
Digital gold
-
Gold ETFs
-
Sovereign gold bonds
And remember: Buy in small amounts on dips rather than going all in at once.
Gold is Costly—But Still Critical
Yes, gold is expensive. But that doesn’t mean it’s a bad investment. On the contrary, experts see gold as a key diversifier, especially in today’s uncertain economic environment.
So this Akshaya Tritiya, go ahead—buy gold, but do it strategically.
