The price of gold is increasing rapidly. In such a situation, if you want to earn, then first you have to understand whether there is more profit in physical gold or gold ETF. Gold has always been an attractive asset for Indian investors. Whether in physical form or through gold ETF, investors have seen it as a safe investment.

The price of gold is increasing rapidly. In such a situation, if you want to earn, then first you have to understand whether there is more profit in physical gold or in gold ETF. Gold has always been an attractive asset for Indian investors. Whether in physical form or through gold ETF, investors have seen it as a safe investment. If we look at the performance of gold and gold ETF in the last 10 and 15 years, it is clear that physical gold has given better returns.

Return on gold investment.

Return in 10 years:

In March 2015, the price of gold was ₹ 26,340 per 10 grams, which has now become ₹ 88,996 by March 2025. In this way, gold gave a compound annual growth rate (CAGR) of 12% in 10 years.

Return in 15 years:

In 2010, the price of gold was ₹ 18,500 per 10 grams, which has now become ₹ 88,996. This means that gold gave a CAGR of 17.01% in 15 years.

Return of Gold ETF

Return in 10 years:

In the last 10 years, Gold ETF gave an average return of 11.44% CAGR.

Return in 15 years:

In 15 years, Gold ETF gave an average return of 10.80% CAGR.

Benefits and risks of investing in gold and gold ETFs

Indian families treasure gold as jewellery and as a legacy from generation to generation. Gold can be pledged as a loan from a bank or financial institution if needed. Historically, physical gold has given high returns, which have been beneficial for investors. However, a locker is required to keep it safe, which brings additional expenses. Adulterated gold is easily available in the market, which can cause losses to buyers. One should buy gold only after looking at the BIS hallmark. Another thing is that in case of sudden sale, it may be difficult to get the right price, especially in the case of jewellery, where making charges are not refunded.

How correct is investing in gold ETFs?

There is no worry of theft or storage in it as it is in electronic form. It can be bought or sold anytime through the stock exchange. There is no making charge or purity problem as compared to physical gold. In the last 15 years, gold ETFs have given lower returns than physical gold. Gold ETFs have fund management fees and other charges, which may reduce the returns slightly.