Gold Prices Touch Record Levels: Here Are Five Alternative Investment Options

Gold rates in India climbed to an all-time high of Rs 1,16,410 per 10 grams on Sept. 30, 2025, due to both festive season demand and global economic uncertainties. This marks a significant rise from the previous high of Rs 1,14,360 recorded on Sept. 23. With gold prices at such record levels, many people might be thinking of alternative investment options this festive season.

Here are five such options you can consider:

1) Real Estate Investment Trusts (REITs)

REITs are a convenient way to invest in commercial real estate without purchasing or directly managing a property. REITs collect money from investors and own income-generating properties, distributing at least 90% of net cash flow within six months. Traded on the stock exchanges, REITs are liquid and easy to purchase and sell, providing flexibility and liquidity. They deliver periodic income in the form of rental returns and potential long-term appreciation in capital. Further, in India, REITs are governed by SEBI, making it transparent and safe for investors.

2) Mutual Funds

Starting a mutual fund Systematic Investment Plan (SIP) is a simple way of acquiring long-term wealth. SIPs allow you to invest a small amount of money on a regular basis, and compounding can hugely increase your funds over the years. Indian equities have in the past provided excellent long-term returns irrespective of short-term market volatility. By remaining persistent and slowly adding more money, even small contributions through SIPs can accumulate into large amounts of wealth.

3) Bonds

Bonds are becoming a good choice for short- to mid-term investment, yielding more than fixed deposits. As of September 2025, best bank FDs yield 6.25% to 7.1%, hardly more than inflation rates, restricting real return. Bonds, however, can provide steady income. Government securities (G-Secs), State Development Loans (SDLs), and PSU bonds provide safer returns of 7% to 8% with less risk and are therefore appropriate for conservative investors in a one-to-five-year period. Investment-grade corporate bonds yield better returns, between 8% and 15%, based on the issuer and duration.

4) Exchange-Traded Funds

ETFs are stock-exchange-listed investment funds similar to stocks. They own assets like stocks, commodities or bonds and typically have an arbitrage mechanism that is intended to keep it trading near its net asset value. ETFs in India that follow indices such as the Nifty 50 or Sensex are a good option among investors seeking diversified market exposure in the equity market.

5) Silver

Silver can be a strong alternative to gold, with prices surging 54% in just the past year. Over the last five years, the white metal has delivered an annualised return of 19.1%. The gold-silver ratio, currently near 80, highlights the relative value of the two metals, calculated by dividing gold’s price by silver’s.

Silver’s three-year CAGR stands at 35.8%, and its price has risen from Rs 57,626 per kg to Rs 1,38,079 over five years, reflecting steady long-term growth. Traditionally seen as a more affordable option than gold, silver often moves in tandem with the yellow metal, offering investors exposure to precious metals without the higher entry cost of gold.

With gold prices reaching new heights, diversifying investments into alternative avenues can help mitigate risks and improve returns. Still it’s better to consult with a financial advisor, as they can provide personalised guidance tailored to one’s unique situation.