Gold remains a timeless investment, valued for its cultural significance and financial stability. In India, gold holds much more meaning than just an investment – it symbolizes love, wealth, and heritage, often passed down through generations. What sets gold apart is its function as a safety net, allowing individuals to use it as a hedge against inflation and for easy liquidity during crises.
In 2024, gold emerged as the best-performing asset class, outperforming the Nifty by more than 10 percent. This was driven by a softening interest rate environment, ongoing geopolitical risks, and central banks continuing to add gold to their reserves. Gold delivered a return of around 28 percent in 2024, marking the best performance in 14 years.
The bullish trend in gold shows no signs of slowing down, prompting Goldman Sachs to raise its year-end 2025 gold price forecast to $3,100 per ounce, up from $2,890. This increase is attributed to sustained central bank demand. In case of continued policy uncertainty, including tariff concerns, there is potential for gold to surge to $3,300 per ounce by the end of the year due to prolonged speculative positioning.
Indian consumption of gold has been robust, with spot gold prices hitting record highs 12 times in just under two months of the current year. In the domestic market, gold prices have surpassed Rs 86,000 per 10 grams, marking an almost 11.70 percent increase in 2025. India remains one of the world’s largest gold consumers, with an annual consumption close to 1,000 tonnes.
Rural India accounts for 60 percent of India’s annual gold consumption, showcasing the importance of gold as an asset class in these regions. With branded players now entering the market, rural residents have the opportunity to own designer jewellery like their urban counterparts, further fueling gold consumption in these areas.
Gold holds a special place in Indian households, often passed down as a family heirloom from one generation to the next, keeping the family legacy alive. Gifting gold is considered auspicious in Indian culture, with gold gifts playing a significant role in various ceremonies. Gold is a status symbol in India, reflecting an individual’s value and purity of intent.
Lastly, gold is viewed as a safe investment in India, offering a sense of security during challenging times. With gold prices on an upward trend, investing in gold is seen as a wise choice for a secure future. For Indians, gold is not just a metal – it is a solution to multiple needs and a symbol of strength and resilience.
In conclusion, gold holds a special place in the hearts and minds of Indians, serving as a cherished asset, a symbol of tradition, and a beacon of hope in uncertain times.