Buy gold this Dhanteras: Smart ways to invest in yellow metal
As India welcomes Dhanteras 2025, gold is not just shining in showcases, it’s surging. Prices have climbed nearly 63 per cent over the past year, with the 10-gram rate now hovering around Rs 1,28,200. By comparison, last year’s Dhanteras saw gold at approximately Rs 78,840 per 10 grams. The rally has made gold one of the best-performing global assets, outperforming equity benchmarks such as the Nifty 50.
The surge is fueled by a mix of factors: rising geopolitical tensions, global economic uncertainty, renewed central-bank buying, and steady investor demand for a safe haven. Festival-season purchases add further momentum, prompting households and investors to reconsider not just whether to buy gold, but how to hold it.
For most Indians, gold is more than an investment — it carries cultural and emotional value, often passed down as a family asset. Traditional jewellery purchases, however, come with trade-offs. High making charges and rising prices can erode real returns, while physical holdings bring storage and security concerns.
Investors seeking gold exposure without the hassles of physical metal have several alternatives:
Gold ETFs: Traded on stock exchanges, ETFs closely track gold prices and allow transactions via a demat and trading account, offering price-linked exposure without storage concerns.
Gold ETF Fund-of-Funds (FoFs): Ideal for those without a demat account, FoFs let investors participate via SIPs, STPs, or lump-sum contributions, simplifying operational logistics.
Gold Mutual Funds: Professionally managed schemes invest in gold or gold-related companies, providing a hands-off, diversified route to gain exposure.
Sovereign Gold Bonds (SGBs): Combining price-linked returns with a small fixed interest, SGBs offer government-backed safety and tax benefits. Current issuance is paused, but existing tranches remain popular.
Gold Futures and Options: For market-savvy investors, derivatives offer leverage and the ability to take positions based on future prices. These carry higher risk and are best suited for experienced participants.