Gold’s 25-Year Journey: From a Modest Investment to a Wealth Magnet
If you had listened to your mother or grandmother’s advice to invest in gold years ago, your portfolio would be shining bright today. Back in the year 2000, the price of gold in India was just around ₹4,300 per 10 grams. Fast forward to 2025, and the same 10 grams of 24-carat gold now costs over ₹1,25,000 — a staggering 50% surge just this year alone.
As Dhanteras and Diwali approach — festivals traditionally associated with buying gold for prosperity — experts believe the yellow metal will continue to glitter on the charts, supported by strong domestic and global factors.
Over the past 25 years, gold has consistently delivered double-digit returns, cementing its status as one of the safest and most rewarding investment options. In 2025 alone, gold has surged nearly 50%, driven by a mix of global and domestic dynamics.
Economists attribute this rally to global economic uncertainty, expectations of interest rate cuts by the US Federal Reserve, geopolitical tensions, and a weakening US dollar. When global markets turn volatile, investors flock to gold as a safe-haven asset. The possibility of falling interest rates makes gold even more attractive, as lower returns from fixed-income instruments encourage investors to look elsewhere — and gold remains a top choice.
Another major driver of this unprecedented rise in gold prices is the massive buying spree by central banks across the world. In an effort to diversify their foreign currency reserves, many central banks have been accumulating gold at record levels.
This large-scale accumulation has strengthened global demand, keeping prices consistently elevated. Experts also point out that diminishing confidence in fiat currencies (like the dollar or rupee) and the growing popularity of gold-backed Exchange Traded Funds (ETFs) have further fueled the metal’s rally.
Analysts from Religare Broking and SMC Global Securities believe that if the era of weak global currencies and lower interest rates continues, gold prices will likely stay strong in the long run.
As the festive season kicks off, gold prices are already hovering near record highs. Market experts predict that this Dhanteras, gold could trade between ₹1,20,000 and ₹1,30,000 per 10 grams, depending on global cues and domestic demand.
However, most analysts agree that unless there’s a major geopolitical or currency crisis, gold is unlikely to cross ₹1.5 lakh per 10 grams in 2025. Still, by 2026, the metal may well reach that milestone, supported by steady central bank purchases, a weak rupee, and strong wedding-season demand in India.
| Year | Price per 10g (₹) |
|---|---|
| 2000 | 4,355 |
| 2005 | 6,113 |
| 2010 | 18,177 |
| 2015 | 26,950 |
| 2020 | 46,353 |
| 2023 | 61,080 |
| 2024 | 76,000 |
| 2025 | 1,26,000 |
The trend clearly shows how gold has not only preserved but multiplied wealth over the years — even during times of economic distress. From global recessions to inflationary spikes, gold has remained a trusted store of value.
Analysts expect gold to remain in an uptrend through 2026, especially if inflation stays high and interest rates decline globally. In India, factors such as high import duties, seasonal wedding demand, and a softer rupee will likely keep domestic prices elevated.
For long-term investors, the message is clear — gold is not just a tradition; it’s a time-tested investment. Whether bought as jewelry or through ETFs, gold continues to shine as one of the most reliable hedges against uncertainty.
