Gold Rush: As Price Tops Rs 1 Lakh Level, Here Are Best Ways To Invest In The Safe-Haven Asset

Gold prices have soared past the historic milestone of Rs 1 lakh per 10 grams in the retail market, driven by global uncertainties and a series of unprecedented announcements made by US President Donald Trump. The safe-haven appeal amid the disruptions in international markets triggered by US tariffs has aided the yellow metal to hit record high levels.

In Mumbai and Delhi, 24-karat gold touched Rs 1,01,350 per 10 grams on Tuesday. On the other hand, 22-karat gold stood at Rs 92,900 per 10 grams in Mumbai and at Rs 93,050 per 10 grams in Delhi, according to reports.

The surge comes amid rising inflation fears and volatile markets triggered by Trump’s tariffs. Gold, widely seen as a safe-haven asset, typically increases in price during turbulent economic times such as geopolitical tensions and trade wars. The yellow metal has risen nearly 59% since March 2024.

On a year-to-date basis, the 24-karat gold has given over 26% returns compared to its Jan. 1 levels of nearly Rs 79,000 per 10 grams. In comparison, the benchmark equity market index NSE Nifty 50 rose 1.75%.

Amid the ongoing uncertainties, the yellow metal has emerged as an attractive destination to park money for investors.

Physical gold: Indians have traditionally used gold investments as a critical tool for wealth creation. While the current valuation appears high, those still looking to buy gold items can consider jewellery, coins or bars. To be clear, buying gold jewellery comes with making charges, which vary from jeweller to jeweller and can go up to 25% of the price of gold used in the jewellery. Meanwhile, buying coins or bars will not incur making charges, and the buyers will only have to pay an additional 3% GST.

Gold ETFs: Gold ETFs, or exchange-traded funds, are a hassle-free method to gain exposure to gold prices without the need to buy or store physical gold. They track gold prices and can be bought or sold just like stocks through a Demat account on digital trading platforms.  

Digital gold: There are several platforms where investors can purchase digital gold, which offers greater flexibility over physical forms like jewellery. For instance, Tata Group-backed Tanishq offers investment in digital gold through its website. Buyers can purchase the digital gold for as little as Rs 100, without the need to worry about its storage. The accumulated gold can also be sold anytime and can be converted into physical assets through retail stores or online platforms of the jeweller. Digital gold comes with an easy redemption process with no minimum lock-in period requirement.

Gold mutual funds: These mutual fund options allow investors to put their money in a fund that invests in gold and gold-related assets, such as gold bullion, coins and stocks of gold mining companies. Like conventional equity mutual funds, these funds offer diversification within the gold sector. This allows investors to gain exposure to gold without directly owning physical gold.