Gold has always been a favored asset for Indian investors seeking safety, inflation hedge, and portfolio diversification. As we move into 2025, many are asking: Will gold prices surge to ₹1 lakh per 10 grams? And more importantly, which Gold ETFs should you consider to capitalize on this potential rally?
I’m Sanjay Kathuria, and in this article, I’ll explore the outlook for gold in 2025 and recommend the two best Gold ETFs to help you invest smartly.
Will Gold Touch ₹1 Lakh in 2025?
Gold prices depend on various factors:
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Inflation & Currency: Rising inflation and a weakening rupee typically boost gold demand in India.
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Global Uncertainty: Geopolitical tensions, economic slowdowns, and market volatility often drive investors to safe havens like gold.
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Interest Rates: Lower global real interest rates tend to support higher gold prices.
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Supply-Demand Dynamics: Central bank purchases and jewelry demand also impact prices.
While no one can predict exact levels, many analysts see a potential for gold prices to test ₹1 lakh if inflation remains high and geopolitical risks persist globally. However, gold can be volatile in the short term.
Why Invest in Gold ETFs?
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Convenience: No need to worry about storage and purity.
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Liquidity: Traded like stocks on the exchange, can be bought/sold anytime.
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Transparency: You own units backed by physical gold.
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Cost-Effective: Lower expenses compared to physical gold buying and selling.
2 Best Gold ETFs to Watch in 2025
1. Nippon India Gold ETF
A top-performing Gold ETF with high liquidity and low expense ratio. Nippon India Gold ETF tracks the domestic price of gold closely and is popular among retail and institutional investors. Its consistent tracking and easy availability make it a go-to option.
2. HDFC Gold ETF
Known for its strong brand and efficient management, HDFC Gold ETF offers seamless entry and exit with minimal tracking error. It has a solid track record of mirroring gold price movements accurately, making it another favorite among investors.
How to Invest in Gold ETFs?
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Open a Demat and trading account if you don’t have one.
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Search for the chosen Gold ETF ticker on your trading platform.
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Place a buy order during market hours, similar to buying shares.
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You can also invest regularly using SIPs if your broker offers this facility.
Final Thoughts by Sanjay Kathuria
Gold remains a vital part of a diversified portfolio, especially during uncertain times. While hitting ₹1 lakh per 10 grams is possible under certain conditions, it’s important to invest based on long-term goals and not just price targets.
Nippon India Gold ETF and HDFC Gold ETF stand out for their reliability, liquidity, and cost efficiency in 2025. Consider adding them to your portfolio for a balanced exposure to gold without the hassles of physical ownership.
