How is Gold as an investment in 2025? Returns & Best Assets

Q: Is gold a good investment?

Gold has provided ~14%pa over last 20 years and with the extra 5% gold pa on Gullak, it can even be considered as a primary asset class now.

Q: Is Gold better than FD?

Gold returns are variable while FDs give fixed returns. Generally, a balanced portfolio consists of a mixture of both, Gold and FD.

Q: Can I invest 1000 rupees in gold?

Yes, in fact you can invest as low as ₹100 in Gold on apps like Gullak

By Team Gullak

Last updated : Aug 4, 2025

6 min read

With ~14.22% pa returns over the last 20 years, Gold provides returns on par with most mainstream asset classes like mutual funds. Its ability to withstand economic turmoils and provide consistent returns is not new to most gold investors. Many who are new to Gold often ask if investing in Gold is good or bad and what are the advantages of investing in the asset. In this article, we will cover if buying gold is a good investment, best Gold assets and enable you to take an informed decision before starting with Gold.

Is Gold a good investment in 2025?

Below are the benefits of Gold as an investment:

Gold's value as a currency: Historically, gold served as an official currency in India until independence. During the Gupta Empire, gold and silver coins were widely circulated and accepted for trade. Even today, central banks globally hold gold reserves to hedge against geopolitical risks and the volatility of the US dollar. As of June 2025, the Reserve Bank of India held 880 tonnes of gold and continues to increase its reserves. This ongoing accumulation creates upward pressure on gold prices. For retail investors, this signals long-term potential and strong future returns.
Gold's undying value as an investment: According to BBC Earth Lab, all the gold ever mined could fit into just 3.5 Olympic-sized swimming pools. This rarity ensures that gold remains one of the few assets whose value is inherently protected by limited supply. Its appeal has stood the test of time and continues to grow as demand increases.
Gold's liquidity as an asset: Gold is a highly liquid asset, you can buy and sell anytime you want. With physical gold(jewellery), you would have to go to a jeweller's shop to sell your gold while with digital modes such as digital gold, gold ETFs and mutual funds, you can sell at the convenience of your home. It takes ~1 day to receive the amount with Gold ETFs ad Gold Mutual Funds and just a couple of minutes with digital gold.
Gold as a safe-haven: Gold often performs well during periods of market stress. It has an inverse relationship with stock indices like the NIFTY 50. When stock markets fall, gold prices tend to rise, making it a valuable hedge against equity market downturns.

Table: Nifty50 vs Gold Price

Year	Nifty 50	Gold Price
2000	1264	4400
2001	1059	4300
2002	1094	4990
2003	1880	5600
2004	2081	5850
2005	2837	7000
2006	3966.4	8750
2007	6138.6	10800
2008	2959.15	12500
2009	5201.05	14500
2010	6134.5	18500
2011	4624.3	26400
2012	5905.1	31050
2013	6304	29600
2014	8282.7	28006
2015	7946.35	26343
2016	8185.8	28623
2017	10530.7	29667
2018	10862.55	31438
2019	12168.45	35220
2020	13981.75	48651
2021	17354.05	48720
2022	18105	52670
2023	21731.4	65330
2024	22356	64070

From the above table, we can observe that in years when NIFTY saw corrections, gold prices typically climbed. This reinforces gold’s role as a buffer during market volatility.

5. Gold's potential to produce higher returns than market: With modern investments such as Gullak Gold+, investors get an additional assured 5% gold every year on top of Gold's annual returns. In the last 20 years, Gold has produced ~14% returns per annum. With Gullak Gold+, investors become eligible for another 5%, taking the total returns to ~19%pa. With assets like Gullak Gold+, not only does gold provide stable returns but also produces returns high enough for it to be considered at a primary investment vehicle.

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Is it a good time to Invest in Gold?

If you're questioning, "is buying gold a good investment in 2025?", below are a few reasons that support this is a good time to Invest in Gold.

Global Uncertainties: Over the past year, multiple global conflicts and wars have heightened investor anxiety. Historically, such uncertainty pushes investors toward safe assets like gold. If these tensions continue, prices could rise even further.
Global Tariff wars: The US has recently imposed export tariffs on several countries, including India. Such policies create the risk of economic fallout and global trade disruptions. In April 2025, when new tariffs were announced, gold prices responded with a noticeable jump. If these policies persist, gold demand could remain strong.
Countries reducing dependency on US dollar: Rising US debt and the dollar's unstable performance have prompted countries to diversify their reserves. Central banks are increasingly turning to gold. Over the past three years, they have purchased over 1,000 tonnes of gold annually, double the rate seen in the previous decade. In June 2025, the RBI added another 0.4 tonnes, bringing India’s reserves to 880 tonnes, an all-time high. This trend reflects growing institutional belief in gold’s strength and points toward sustained demand.

The above listed factors indicate that Gold might continue to have a great future for the next few years. Please note: Gold is a long-term investment and fetches great returns over extended periods, investment decisions in gold shouldn't be rushed just because of short-term potential.

Where to Invest in Gold in 2025?

There are multiple Gold assets in invest in 2025, these include:

Gold ETFs
Gold Mutual Funds
Digital Gold
Physical Gold
Gold leasing

Among these, physical gold purchase results in additional making & wastage charges making it not the most suitable option as an investment. Gold ETFs, Gold Mutual Funds & Digital Gold are great assets with good liquidity. They don't bear any additional making charges and are highly liquid. However, in 2025, with Gold leasing into the play investors can benefit from gold investments now more than ever.

What is Gold Leasing?

Gold leasing is a digital gold investment option where you lease your gold to jewellers. These jewellers use the gold as working capital for their day-to-day operations. In return, they offer you an additional 5 percent gold annually as interest. On apps like Gullak, you can access this through features such as Gullak Gold+. For example, if you invest 100 grams of gold, you receive an extra 5 grams after one year. By year eight, your total holding grows to 148 grams. This entire quantity benefits from any increase in the gold price over the period. Investments start from just ₹100 & users can choose between daily, weekly, monthly SIPs and one-time investments options.

Gold leasing via Gullak offers a unique combination of security, growth, and compounding benefits, making it one of the smartest gold investment strategies in 2025.

TL;DR: Gold as an investment

Strong historical returns: Gold has delivered ~14.22% annual returns over the last 20 years, which is comparable to mutual funds.
Safe during uncertainty: Gold acts as a hedge during market crashes and global turmoil, often rising when stock markets fall.
Multiple investment options: Digital Gold, Gold ETFs, and Gold Mutual Funds offer high liquidity and no making charges.
New-age gold leasing: With apps like Gullak Gold+, you can lease your gold and earn an extra 5% in gold every year.
Compounding advantage: 100 grams invested today can grow to 148 grams in 8 years, all of which benefits from gold price appreciation.
Macro trends support gold: Central banks are buying more gold, global tensions are rising, and countries are shifting away from the US dollar, all of which can push gold prices higher.

Bottom line: If you're looking for safety, steady growth, and smarter gold investing, 2025 is a great time to start.