Gold prices have seen a remarkable surge in 2025, surpassing the Rs 1 lakh mark per 10 grams, driven by geopolitical tensions and economic uncertainties. The ongoing Iran-Israel conflict and US tariff policies have significantly influenced this upward trajectory, prompting investors to reconsider their investment strategies in the precious metal.
The Multi Commodity Exchange (MCX) hit a peak of Rs 1,01,078 on June 16, reinforcing gold’s status as a safe-haven asset amid market fluctuations. This surge has attracted both experienced and novice investors, leading to a reevaluation of investment approaches in gold.
Rahul Kalantri, VP Commodities at Mehta Equities, highlighted the potential impact of a delayed US trade deal on global market volatility, further enhancing gold’s appeal as a safe investment option. Investment experts like Raju Singh emphasized the importance of making strategic gold investments in the current economic landscape to maximize returns while managing risks.
Experts recommend prioritizing gold exchange-traded funds (ETFs) and mutual funds over physical and digital gold for prudent investment decisions. Gold ETFs offer low costs, high liquidity, and regulatory safety, making them an attractive choice for most investors. Mutual funds like Nippon India Gold Savings Fund and SBI Gold Fund stand out for their consistent performance and long-term growth potential.
An analysis of investment avenues reveals that physical gold is the most expensive option due to making charges and taxes, while digital gold entails platform risks and lacks regulatory oversight. In contrast, gold ETFs offer cost efficiency with expense ratios typically ranging from 0.5% to 1%, making them a preferred choice for investors seeking to optimize their portfolios.
Raju Singh recommends maintaining a portfolio allocation of 10–15% in gold, advocating for steady investments through systematic investment plans in gold ETFs to balance risk and ensure portfolio stability. This disciplined approach helps investors navigate market volatility while securing their financial future.
As geopolitical and economic uncertainties continue to influence investment decisions, understanding the costs, risks, and strategic significance of different gold investment avenues remains crucial for achieving optimal portfolio stability. In 2025, the method of investing in gold plays a pivotal role in shaping financial outcomes for investors worldwide.
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