Why Investors Are Rushing to Buy Gold and Silver in 2025?

Gold and Silver in 2025:
The bullion market is currently booming as gold and silver prices continue to touch new highs. In India, the price of 10 grams of fine gold has reached around ₹1.2 lakh, while a kilogram of silver costs ₹1.52 lakh — the highest levels ever. Both metals have gained over 50% so far this year, making them popular among those seeking safe investment options rather than just jewelry.

Gold and Silver in 2025:
Experts say that gold and silver have consistently offered good long-term returns. Over the last two decades, gold prices have increased by an average of 14.9% annually, while silver has grown by around 13%. Even during market uncertainties such as the COVID-19 pandemic and the Russia–Ukraine war, bullion investments remained relatively stable compared to equities and real estate.

Different Investment Options

Investors today have several ways to invest in gold and silver:

1. Physical Purchase: Buying jewelry, coins, or bars remains common, but it carries risks like theft. Keeping them in bank lockers or insured storage is advisable.
2. Gold ETFs: Managed by mutual funds, these are digital alternatives that track gold prices. Investors can buy or sell them easily like shares.
3. Sovereign Gold Bonds (SGBs): Though new issues are paused, they’re still available in the secondary market. They offer returns and are tax-efficient.
4. Electronic Gold Receipts (EGRs): Offered by RBI-approved apps, these digital assets can be traded easily on stock exchanges.

Tax Rules

If gold or silver is sold within two years, profits are taxed as short-term capital gains based on the investor’s income slab. For holdings beyond two years, they attract a 12.5% long-term capital gains tax without indexation benefits. However, SGBs and gold deposit certificates are exempt from such taxes.

Gold and silver are ideal for investors seeking stability. Experts recommend allocating 15–20% of one’s portfolio to bullion, as these metals protect wealth during global uncertainties and offer reliable long-term growth.

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