Gold Hits ₹1 Lakh—Here's What's Behind the Surge
Gold price made headlines by touching a record ₹1,00,000 per 10 grams in the retail market on 22nd April 2025. Rising global tensions and growing concerns about economic stability were the primary reasons behind this historic high.
The tipping point came when former U.S. President Donald Trump hinted at imposing reciprocal tariffs—spooking markets and reminding everyone just how uncertain global trade can get. In addition, central banks worldwide are steadily adding gold to their reserves, and it's clear why investors flock to gold as a safe haven asset.
Gold ETFs Are Having a Moment
While gold itself is grabbing the spotlight, Gold ETFs are in turn having a breakout moment.
More and more Indian investors are turning to Gold ETFs—not just because gold is on a roll but also because ETFs offer an innovative, Hassle-free and budget-friendly gold investment option without physically buying it.
Let's break down how the investment landscape for Gold ETFs have evolved in the past six years:
Key Metric | As on 30 April 2019 | As on 31 March 2025 |
Gold ETF AUM (Assets Under Mgmt) | ₹4,594 crore | ₹58,888 crore |
Gold ETF AUM Share in MF Industry | 0.19% | 0.90% |
Investor Folios | 3.2 lakh | 69.7 lakh |
Gold ETF Schemes Available | 12 | 20 |
In around six years, assets under management for Gold ETFs have grown over 12 times, and the number of investors has exploded. Investors are seeing value in riding the gold wave through ETFs.
March 2025: A Quick Breather?
Interestingly, after a strong February, March saw a bit of a slowdown:
- Net outflows from Gold ETFs hit ₹77 crore in March 2025, compared to a massive ₹1,980 crore inflow in February 2025 and ₹3,751 crore inflow in January 2025.
- The number of ETF folios addition also dipped—falling from over 3.36 lakh additions in February 2025 to 1.37 lakh in March 2025.
This could be a sign of short-term profit booking. With gold hitting all-time highs, it's natural that some investors chose to lock in gains. But overall, the upward trend seems to be intact.
Why Gold ETFs Are Gaining Ground
So, what makes Gold ETFs such a hit in 2025?
- No locker required: You're investing in gold without worrying about storing it.
- Easy to buy/sell: Like shares, ETFs can be traded on the stock exchange.
- No making charges or purity concerns: It's pure investment gold—minus the stress.
- Start small: You can invest even at 1 gram of gold.
As the gold price today touches unprecedented levels, many people are choosing ETFs for their simplicity, transparency, and flexibility.
Final Thoughts
Whether economic fear, geopolitical drama, diversification, asset allocation or smart investing, gold is back in the spotlight. While physical gold still holds emotional value for many, Gold ETFs are emerging as the go-to choice for investors looking to ride the gold rally without the traditional baggage.
With the retail gold price hitting ₹1 lakh and interest in ETFs hitting new records, it's clear that gold isn't just glittering—it's booming.
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