Gold investment- Best ways to Invest in Gold

By Team Gullak

Last updated : Oct 1, 2026

5 min read

Gold as investment has been one of the go-to options for Indian households. Today, Indian households hold more 27,000 tonnes of gold, making us the 2nd largest consumer of the asset in the world. In this article, we will discuss the various questions that investors might have on gold investments- is gold a good investment, best ways of investing in Gold and their returns.

How is Gold as an Investment?

Before we dive deep into how gold is as an investment, let’s take a look at gold’s annual returns across different time horizons:

Last 10 years- 12.4%

Last 5 years- 14.94%

Last 1 year- 28%

For comparison, NIFTY50 has given an annual return of ~25% in the last 1 year. Now that we have established that gold is a great as an investment, let's take a look at a look at some of the other benefits of gold investment:

Types of Gold Investments and Gold investment returns

In today’s landscape, there are 3 major ways of investing in gold. In this section, we will discuss them in detail so that you can choose which gold investment to go with.

Digital Gold

Digital Gold is a gold investment option where you buy gold digitally using apps like Gullak. When you buy digital gold, an equivalent quantity of physical gold gets automatically stored in sequel vaults. So, you end up getting all the benefits of gold while negating all the cons that physical gold comes with like storage issues and high making charges. Digital gold investments start from as low as ₹10. You can withdraw your investments anytime you want as cash or redeem in gold.

Gold investment returns- 11%(average gold price increase)

Gold ETFs & Mutual Funds

Gold ETFs are Exchange Traded Funds which track the price of gold without actually buying gold. One unit of gold ETF is equal to 1 gm of Gold. There are no lock-in periods and you can withdraw anytime you want. Unlike digital gold, you can not withdraw in the form of physical gold.

Gold investment returns- 11%(average gold price increase)

Gullak Daily Gold Savings

Gullak is a gold savings option built for people who don't want to buy gold in one go, which can be a big amount for many. Instead, you can start buying gold on Gullak from just ₹100/day. For example, saving ₹100/day means you'd have put ₹36,500 into gold within a year, bought bit by bit. Over time, this gold keeps accumulating, and all of it benefits from gold price increases.

You also get 100% flexibility: pause or restart your daily gold amounts anytime, and choose between daily, weekly or monthly SIPs or one-time transactions. Once you've built your gold savings, you can redeem them as jewellery at Gullak's network of 5000+ partner stores, including Tanishq, Malabar and CaratLane.

Gold investment returns- 11%(average gold price increase), with your gold quantity building steadily through small, regular purchases

Now that we have had a brief look at the various modes of gold investment, let’s compare all the gold investment assets in a tabular manner:

Table: Comparison of different gold investments

Concluding thoughts on Gold investments

Gold has always been an evergreen investment option in India. However, it is important to choose wisely before investing in various forms of gold. Gold investments like physical gold come with hefty making charges, making them a sub-optimal way to invest in gold. On the other hand, options like digital gold and gold ETFs negate the unnecessary charges and improve the value of gold as an investment. Gullak makes it even easier, letting you build gold from just ₹100/day, pause or restart anytime, and redeem your savings as jewellery at 5000+ partner stores.

Disclaimer: Investors should do their own due-diligence before choosing any financial asset. All data here is updated as of 2025