Gold touched all-time highs in 2025. This has been primarily a consequence of turbulent geopolitical issues such as the Russia-Ukraine war and Trump tariffs, along with other associated developments, such as the continued underperformance of the Indian equity markets, with the benchmark Nifty 50 staying flat over the last year.
It has resulted in making gold a highly sought-after investment asset class in India. The current price of 10 grams of 24k gold in Delhi is ₹1,13,220 as of today, i.e., 18 September 2025. Now with no new sovereign gold bonds (SGBs) being issued, investors looking for gold exposure have four practical and popular options to explore. The following are discussed briefly below:
1. Physical gold (jewellery, coins, bars)
Physical gold, especially in the form of well-crafted jewellery, has been the nation’s preferred choice for decades. Considered an inflation hedge by professionals, gold in its physical form is nothing less than sacrosanct for normal retail investors and becomes a highly sought-after investment asset class, especially during festivals.
Still, it is crucial to acknowledge that physical gold requires safe storage space, constant monitoring, and insurance due to the risk of theft. Furthermore, gold coins and bars provide a purer and cost-efficient alternative to jewellery since they do not have any making charges. A GST of 3% applies while buying coins and bars.
2. Gold Exchange-Traded Funds (ETFs)
Gold ETFs are traded on stock exchanges like shares. They represent physical gold held in secure vaults. Some prominent examples of gold ETFS are the UTI Gold ETF, Kotak Gold ETF, Axis Gold ETF, SBI Gold ETF and Invesco India Gold ETF.
Gold ETFs, therefore, provide investors with healthy liquidity, low effective costs, and seamless portfolio diversification. They also remove storage limitations, purity concerns and the possibility of theft like physical gold. These features holistically make gold ETFs the ideal investment destination for tech-savvy investors using demat accounts.
3. Gold mutual funds
Gold mutual funds are open-ended funds that invest primarily in gold ETFs. They provide small investors with an opportunity to invest in gold with professional management.
Through these mutual funds, investors can look to invest in gold-backed securities through easy systematic investment plans (SIPs). These SIPs generally require minimal investments from investors to begin with and help in the gradual accumulation of gold wealth. These funds have slightly higher expense ratios than ETFs, but can be prudent choices for beginners.
4. Digital Gold
Digital gold permits investors to purchase and sell small quantities of 24K gold online, backed by physical gold stored in insured vaults. This option is affordable, comforting and accessible from anywhere without the need for physical handling or concerns regarding the security of the gold asset.
Due to the same features, digital gold is gaining traction and popularity among young and first-time investors for its ease of use and flexibility.
With gold prices hovering around historic levels, and inflation concerns continuing to remain volatile due to the ongoing geopolitical issues, such as the Russia-Ukraine war, Trump sanctions, along with other associated issues, these four investment options provide investors with diverse ways to invest safely and comfortably in gold and make the most of the ongoing bull run.
Disclaimer: Gold investments are subject to market risks and price volatility. This article is for informational purposes only and does not constitute financial advice. Investors should consult certified financial advisors before making investment decisions.
