Gold Price: Gold broke all records of returning returns in 2025. It topped the major asset classes in the first half of 2025. It saw a tremendous rise of 26 percent. According to the World Gold Council (WGC), during this period, gold created 26 new all-time high globally. At the same time, Gold broke 40 records last year.
The WGC reported in its report that investment demands have strengthened due to weak US dollar, limited interest rates and uncertain generous environment.
What will be the attitude in the second half?
According to the WGC estimate, if the market’s current sentiment remains, the gold can record an additional increase of 0 to 5 percent. However, the report also warns that the economy does not always perform according to the general opinion. Therefore, there is also a need to be vigilant.
If global economic conditions worsen, gold can benefit. Especially, stagflation and geopolitical stress in a position to increase. This can increase the price of gold by 10 to 15 percent more.
On the other hand, if permanent global stresses are resolved, such as tariff war and stress in West Asia, gold demand for investment may weaken. According to the World Gold Council report, the price of gold may fall by 12 to 17 percent in this situation.
What should investors do
Experts recommend that only 5 to 10 percent of the portfolio should be applied in precious metals. This keeps the balance in the portfolio. If you want to invest in gold, then there are some important options.
1. Sovereign Gold Bond (SGB)
Since 2015, RBI has launched 67 SGB series. Of these, 14.7 crore units have been released. They are traded in the cash segment of BSE and NSE and can be purchased and sold from demat account. However, the new bond is not launching. These are bonds with a duration of eight years. These include five years of lock-in. RBI also offers buyback in the fifth, sixth and seventh year.
The aim of Gold ETF is to track the price of domestic physical gold. A unit is equal to one gram of gold. It is supported by high quality physical gold. ETF requires a demat account. It contains brokerage and slight expansion ratio, which is less than the making cost of physical gold.
3. Gold Mutual Fund
These funds invest in Gold ETF and show the price as NAV. They can be purchased without a demat account. They have a low of minimum investment limit. However, their spending ratio can be higher (1–2%) than ETF.
4. Physical Gold
Physical gold means gold jewelry or bar is a traditional favorite option of Indian investors. Despite this, there are many challenges in physical gold. Such as keeping gold, identifying pure jewelry and liquidity. Gold ETF and mutual funds are considered more convenient and transparent options than this from the investment perspective.
Also read: FD VS SIP: FD of ₹ 10 lakh or SIP of ₹ 5 thousand, who will make you a millionaire first?