The gold prices in India have made history by crossing a milestone of ₹1 lakh per 10 grams of 24 karat gold. The price of gold went up nearly ₹3000 on April 22, 2025, to achieve the landmark figure. This comes on the back of global trade uncertainties due to tariffs, a weakening US dollar, and the rising demand among central banks and individuals.
Why are Gold Prices rising?
The factors influencing the surge in gold rates are largely due to the uncertainties caused by global tariff tension, trade war between the US and China, and others. Let’s explore the reasons in detail.
- Tariffs imposed by the US: The US has announced a series of tariffs in the past few weeks, which raised concerns over potential economic repercussions, including inflation and recession risks. However, Trump has announced a 90-day pause on tariffs in all countries except China.
- US-China trade war: The US and China trade tensions are escalating significantly, followed by an increase in tariffs and retaliatory measures. The US has imposed 245% retaliatory tariffs on China on April 16.
- Weakening US dollar: The US dollar index has slipped by 9.3% since the beginning of this year and also reached a three-year low of 98.55. This further increased the demand for gold prices, pushing its price upwards.
- Central bank buying: Central banks are regularly increasing their gold reserves. In January this year, central banks recorded a net purchase of 18 tonnes. On a yearly basis, the RBI bought 72.6 tonnes of gold in the calendar year 2024, marking a 9% increase in total gold reserves.
On the back of these uncertainties and trade tensions, investors are moving away from risky assets like stocks and cashing out of the US dollar. In contrast, the investors are more interested in gold, traditionally called a safe-haven asset.
Gold Prices in India: A Remarkable ~160% Return in the Last Five Years
As of April 22, 2025, the cost for 10 grams of 24K gold in India has spiked to more than ₹1 lakh. In the last few days itself, the cost for 10 grams of 24K gold in India has increased from ₹95,670 on April 13, 2025, to ₹1,01,350 on April 22, 2025, marking a 5.94% rise.
To understand the return one could potentially get from gold, consider this example - if you had invested ₹1 lakh in gold five years ago, the value for the same today would be a whopping ₹2.59 lakhs.
You can check the live gold rates of 24 karat, 22 karat, and 18 karat gold in your city here.
| Quantity | Cost as on 22nd April 2025 |
| 10gm 24 Carat Gold price | ₹1,01,350 |
| 10gm 22 Carat Gold price | ₹92,900 |
| 10gm 18 Carat Gold price | ₹76,010 |
Over the last decade, India has also witnessed a meteoric rise in gold and silver rates collectively. While 10 grams of gold in 2013 was priced at ₹29,600, today the same amount has reached ₹86,990 in 2025. Similarly, 10 grams of silver was priced at ₹540 in 2013. The same quantity costs ₹870 today!
| Year | Gold Rates (Rs./10 Gram.) | Silver Rates (Rs./10 Gram.) |
| 2013 | 29,600 | 540 |
| 2014 | 28,007 | 431 |
| 2015 | 26,344 | 378 |
| 2016 | 28,624 | 370 |
| 2017 | 29,668 | 378 |
| 2018 | 31,438 | 414 |
| 2019 | 35,220 | 406 |
| 2020 | 48,651 | 634 |
| 2021 | 48,720 | 626 |
| 2022 | 52,670 | 551 |
| 2023 | 65,330 | 786 |
| 2024 | 79,800 | 980 |
| 2025 | 1,01,350 | 1,010 |
Source: Investing.com for 2025 (Data as of April 22, 2025)
As per World Gold Council, central banks in India also hold close to 109 metric tonnes of gold as a part of its Gold reserves. In this context, India comes fourth to countries like China (316.01 metric tonnes), Turkey (201.97 metric tonnes) and Poland (187.93 metric tonnes).
Top Gold Stocks To Watch Out for in 2025
As gold prices in India continue to surge, certain companies with direct exposure to the gold ecosystem could benefit significantly. These include businesses involved in gold jewellery, gold financing, and gold exports. Some of the top gold-related stocks that could be positively impacted by a rise in gold prices include:
1. Titan Company: Tanishq by Titan is one of India’s leading jewellery retailers. A rise in gold prices often boosts the perceived value of its inventory, enhancing profit margins. Additionally, strong brand loyalty helps Titan maintain steady demand even during periods of high gold prices.
2. Muthoot Finance: As one of India’s largest gold loan providers, Muthoot Finance directly benefits from rising gold prices. Higher gold valuations increase the loan-to-value (LTV) ratio, allowing the company to lend more against the same quantity of gold.
3. PC Jeweller: PC Jeweller is a leading jewellery retailer in India and is one of the fastest growing jewellery companies in the country. The company’s revenue is up for the last 5 quarters, jumping from ₹43.48 Crores to ₹683.44 Crores, with an average increase of 38.3% per quarter.
Pros and Cons of Investing in Gold at Peak Prices
While gold has historically proven to be a strong investment for wealth preservation, it’s important to consider both its risks and rewards before one considers investing.
Pros of Investing at Peak Prices
- Safe Investment: Gold is considered to be a reliable store of value, especially during times of economic uncertainty. Even at peak prices, gold can help protect wealth from market volatility and inflation.
- Hedge Against Inflation: Gold often performs well when inflation is high, maintaining its purchasing power over time. Investing even at higher prices can help safeguard against the eroding value of money.
- Global Demand: Strong global demand from investors and central banks can continue to drive prices higher, offering potential for further growth even after hitting record highs.
- Portfolio Diversification: Adding gold to your investment portfolio can reduce overall risk, as it often moves inversely to stocks and currencies.
Cons of Investing at Peak Prices
- Limited Short-Term Gains: When you invest at peak prices, there’s a risk that gold prices may correct or stabilize, limiting immediate returns.
- Price Volatility: Although gold is a stable asset in the long term, it can experience short-term price fluctuations, leading to potential losses if the market corrects sharply.
- No Passive Income: Unlike stocks or bonds, gold does not provide dividends or interest. This means your returns rely solely on price appreciation.
- Opportunity Cost: Investing heavily in gold at its peak may result in missing out on higher returns from other asset classes like equities, which could potentially outperform gold in the long run.
Ways to Invest in Gold: Physical Gold, Gold ETFs, Sovereign Gold Bonds and more
The market offers investors multiple convenient ways to invest in gold, including:
1. Physical Gold: Investing in physical gold—such as jewelry, coins, or bars—is the most traditional method. It offers the advantage of tangible ownership, but comes with challenges like storage costs, security concerns, and making charges (especially with jewelry).
2. Gold ETFs (Exchange-Traded Funds): Gold ETFs are financial instruments that allow you to invest in gold without physically holding it. They are traded on stock exchanges just like shares and reflect the current price of gold. Gold ETFs offer high liquidity, low storage costs, and ease of buying or selling anytime during market hours.
3. Sovereign Gold Bonds (SGBs): Issued by the Government of India, Sovereign Gold Bonds (SGBs) are a secure way to invest in gold. They not only track gold prices but also offer an additional fixed interest rate of 2.5% per annum. SGBs come with a lock-in period of 8 years (with early exit options after 5 years), and they are free from storage risks and capital gains tax if held till maturity.
4. Gold Stocks: Another way to gain exposure to gold is through gold mining or refining company stocks. These stocks are influenced by both gold prices and the company’s performance, offering potential for higher returns compared to physical gold. However, they also come with market risks associated with the company’s operations.
Your choice of gold investment should align with your financial goals, risk tolerance, and investment horizon. While physical gold offers emotional and traditional value, options like ETFs, SGBs, and gold stocks provide better liquidity, security, and returns potential without the hassle of physical storage.
Wondering how to invest in Gold in the Stock Market in 2025? Get Started here.
Conclusion
Gold has proven to be a valuable asset, delivering impressive returns of 160% over the last five years. Its role as a safe-haven investment, especially during times of economic uncertainty, continues to attract investors. However, with gold prices at record highs, it’s important to weigh the pros and cons of investing at peak levels. Whether you choose physical gold, Gold ETFs, Sovereign Gold Bonds, or gold stocks, each option comes with its own set of benefits and risks. A balanced approach, aligned with your financial goals and risk appetite, can help you make the most of your gold investments. As with any asset, staying informed and diversified is key to long-term success.
Disclaimer
This blog is for general/educational information purposes and is no way to be considered as advice, or recommendation for investment or otherwise.
Investment in securities market are subject to market risk, read all the documents carefully before investing. The securities quoted are exemplary and not to be considered as any kind of advice or recommendation. The past performance of the stocks are not necessarily indicative of future performance. INDmoney Private Limited 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500.
Sources: Investing.com, Investopedia