Explainer: All that is glittering is gold — the yellow metal's 25-yr journey and what to expect next
For the first time ever, the price of 24-carat gold in Delhi has crossed Rs 1 lakh per 10 grams. This marks a big milestone for Indian investors, showing how gold continues to be one of the safest and most trusted ways to protect wealth — especially in uncertain times.
A 25-year climb to glory
Gold has been a steady performer over the past 25 years. In 2000, it was just around Rs 4,400 per 10 grams. By 2010, it jumped to Rs 18,500. In 2020, it reached nearly Rs 50,000. And now, in 2025, it has doubled again to cross Rs 1 lakh. That’s a 22-fold growth over two and a half decades. This steady rise shows why gold is seen as a “wealth protector” across generations.
Why are prices rising now?
Several global and local factors are pushing gold prices higher:
- Global economic uncertainty: The US is facing market troubles, with its stock markets falling and the dollar weakening. When global markets shake, investors rush to gold for safety.
- Central bank buying: Many countries, especially emerging ones, are buying more gold instead of US government bonds. This adds to demand and supports prices.
- Investor trust: Gold exchange-traded funds (ETFs) are seeing huge investments. In just the first quarter of this year, over $21 billion went into these funds, showing investor confidence.
Outlook: Will gold keep rising?
Global banks like Goldman Sachs is more bullish on gold than ever before. It has raised its forecast for gold prices to $3,700 an ounce (28.35 grams) by the end of 2025, its third such hike this year. On January 1, 2025, gold was priced at $2,623 an ounce. If gold closes at $3,700 by the end of the year, it will deliver 41-per cent return. In India, strong cultural demand, festive buying and a weakening rupee could push prices higher.
What should Indian investors do?
Gold continues to be one of the most liquid and secure assets. Whether in jewellery, coins, digital gold, or ETFs, it plays a vital role in diversifying an investment portfolio. Experts suggest having at least 10-15% of your portfolio in gold to safeguard against inflation, currency risks and economic shocks.
Key takeaways
Gold isn’t just a shiny metal — it’s financial security. As the world changes, India's age-old love for gold proves to be both emotional and economically wise.
