MUMBAI, 28 July 2025: Does gold have a place in your investment portfolio? If not, then change your investment advisor, if you are investing on your own, then change your strategy. On July 22, the price of 10 grams of gold has already shown a price of INR One Lakh.
In the last two and a half years, investors who invested in gold have received a return of up to 100 percent. Yes, the price of gold has doubled in 28 months. If we look at the gold price figures of the last five years, in MCX futures, the price of 10 grams of gold in the first week of July-2020 was INR 48200.
Which was INR 50600 in the first week of July-2022 and INR 73050 in the first week of July-2024. On July 22, 2025, this price showed a level of INR 100329. Those who invested in gold have earned up to 40 percent in the last 12 months.
By the way, the story of earning a lot of money in gold investment is also very old. Experts who analyse the gold market say that once or twice in every five years, such a time comes when investors earn a lot of money. This means that this is a long-term investment. Take it and forget it, it will make you forget all your sorrows.
It is necessary to understand the technical reasons behind the rising gold price. Since Trump came to power, he has been issuing new FATWAs every day, the war that started between Russia and Ukraine has spread to India, Israel, Iran and now Thailand and Cambodia.
Usually, in a situation of war, stock markets and other investment instruments are trapped in a vortex of recession. Whereas, gold, being considered a safe investment, takes a bullish path.
Currently, in addition to Trump's tariff war and missile wars of various countries, the opposite situation of the dollar index is also creating uncertainties in the market. Most of the world's federal banks are currently buying gold. The reason for this is said to be twofold. One is global chaos and the other is the strategy of each country to expand its own economy. For which they have to keep gold reserves. If the situation continues like this, experts expect that in the coming days, gold will cross INR 1.25 lakh level, meaning the price of 10 grams of gold will reach INR 125,000.
Bank of America predicts that the price of gold will reach $4,000 by the end of 2025. While Goldman Sachs expects gold investors to earn up to 75 percent in one year by the end of 2025. One thing is also true that not everyone who has invested in gold since the last five years is likely to keep the gold.
But Trump also makes statements like a swinging pendulum at present. In such a situation, if those who invested in gold five years ago sell to cash in their current earnings, there may be a profit booking sale. But for new investors, this can be an investment opportunity. As mentioned earlier, gold is an investment that requires patience. Which will definitely give you profit over time.
For the last two years, India has had good monsoons. Farmers' crops have also been good in the Kharif and Rabi seasons. If we look at the trend of the last decade, in the year when the monsoon is good, the auto sector purchases in rural areas increase after the season. This means that instead of saving their income, farmers buy scooters, cars or tractors. In fact, farmers should also invest in gold. So that when the crop is not good in the year, they can take gold loans instead of taking high-interest private loans.
That is why gold is called a safe haven investment. Because when no other currency works, gold itself becomes a currency. Remember, when India and Pakistan were separated, what did the Hindus who left Karachi or Lahore and came to India bring with them? Only gold ornaments. ..! That is why our ancestors created the tradition of giving gold to their daughters as dowry.!
By Kalpesh Sheth is an commodities expert with years of experience.
Image credit: agroinvestspain.com
