{"id":7798,"date":"2025-08-25T08:01:05","date_gmt":"2025-08-25T08:01:05","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/25\/is-gold-still-a-safe-investment-option-what-indian-buyers-should-know-about-its-future-business-news\/"},"modified":"2025-08-25T08:01:05","modified_gmt":"2025-08-25T08:01:05","slug":"is-gold-still-a-safe-investment-option-what-indian-buyers-should-know-about-its-future-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/25\/is-gold-still-a-safe-investment-option-what-indian-buyers-should-know-about-its-future-business-news\/","title":{"rendered":"Is Gold Still A Safe Investment Option? What Indian Buyers Should Know About Its Future | Business News"},"content":{"rendered":"


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While gold is not expected to crash, temporary dips may offer better entry points, especially if inflation expectations shift or central banks ease policy<\/h2>\n
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Don\u2019t put all your portfolio into gold. Combine ETF with small physical holdings and, venture into complementary assets like silver or curated equity-linked instruments. (AI-generated Image)<\/p>\n<\/figure>\n

Gold has long been a symbol of financial security in India\u2014an emotional hedge against inflation, a festive purchase, and a tangible investment. Globally, it has been a go-to safe asset amid repeated crises. But this year, cracks are starting to show.<\/p>\n

While prices remain high, signs of weakening demand and changing investment patterns are raising questions. For Indian buyers, where gold touches culture and economics, the implications are real. Let\u2019s understand.<\/p>\n

What\u2019s Global Perspective On Gold?<\/strong><\/p>\n

Performance Review<\/strong><\/p>\n

Despite a volatile global economy, gold has seen substantial gains in 2025. Year-to-date return stands between 25% and 28%, outpacing stocks, bonds, and even speculative assets like Bitcoin. Institutions like UBS forecast it could hit $3,600 per ounce by March 2026 and potentially $3,700 by mid-2026 under favourable conditions.<\/p>\n

Central Bank Support Eases<\/strong><\/p>\n

A key pillar behind gold\u2019s strength has been central bank purchases, support that helped drive the price upward. Yet, the pace slowed: purchases dropped from approximately 243 tonnes in Q1 to 166 tonnes in Q2. That\u2019s not a crash, but a clear signal that the steady base might be softening.<\/p>\n

Robust ETF Inflows Continue<\/strong><\/p>\n

Backing from exchange-traded funds, however, remains robust. Global inflows surged nearly 45% in value, totalling $132 billion in recent quarters. Indian markets mirrored this enthusiasm: in Gujarat, gold ETF assets under management rose by 27% earlier this year, showing investors are still confident in digital and paper instruments.<\/p>\n

Jewellery Demand Slumps<\/strong><\/p>\n

On the flip side, physical demand\u2014jewellery, a cornerstone of traditional buying\u2014has softened, particularly in India and China. High prices, sluggish discretionary spending, and rising cost-of-living concerns are dampening buying sentiment.<\/p>\n

What\u2019s Going On In India?<\/strong><\/p>\n

Domestic Prices Near Historic Highs<\/strong><\/p>\n

Gold is trading at nearly Rs 101,000 for 10 grammes, up 30% year-to-date on the MCX. This combination of USD strength and local tax-driven pricing pressures have nudged retail rates into deeply stretched territory.<\/p>\n

Demand Down To 5-Year Low<\/strong><\/p>\n

Analysts estimate India\u2019s annual gold demand will fall between 600 and 700 tonnes, down from 803 tonnes in 2024\u2014the lowest level in five years. High gold prices and inflation are pricing out typical retail buyers.<\/p>\n

Shift In Buying Habits<\/strong><\/p>\n

With traditional jewellery losing traction, consumers are opting for:<\/p>\n