“Gold is a hedge against the follies of governments.” – Bernard Baruch

If you’ve been following the future of gold, you already know that the gold price is increasing in India in 2025 at a record pace. Investors are debating the future of the gold price, whether the gold price will increase or decrease, and what the future of gold market in India really looks like. The gold rate increase has been headline news, as gold touched nearly ₹1,13,000 per 10 grams in September 2025, compared to around ₹65,000 in early 2024. Analysts say the gold price will increase in the future depending on interest rates, rupee movement, and global demand. Add to this the intrigue of the gold and silver live prices, and the conversation on gold vs silver for investment is louder than ever. Want to add gold to your portfolio? Cube Wealth coaches can guide you with expert-backed strategies today.

If you are thinking of adding gold to your portfolio, you’re not alone. Gold prices in India have been on a relentless upward trajectory, sparking conversations from family WhatsApp groups to trading desks. For investors, the big question is: what’s driving the surge and should you invest now?

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Gold Prices in September 2025

As of September 2025, 24-carat gold in India is trading around ₹11,133 per gram (≈ ₹1,11,330 per 10 g) in major cities. 

Globally, spot gold is hovering near $3,650–$3,700 per ounce, reflecting international demand, central bank buying, and currency movements. 

Takeaway: Domestic prices depend on both international quotes and the rupee’s exchange rate. If the rupee weakens against the dollar, the gold price in India rises even faster.

Why is the Price of Gold Increasing in India?

The rise in gold prices isn’t random — multiple factors are at play:

1. Global Stock Market Volatility: With equity markets swinging due to inflation fears, trade tensions, and tech valuations, investors are shifting to gold as a safer bet.
2. Rupee Depreciation: A weaker INR against the USD makes imported gold costlier. In 2025, the rupee has hovered near record lows, magnifying domestic prices.
3. Geopolitical Tensions: Conflicts in Eastern Europe and trade disputes in Asia push global investors towards safe-haven assets.
4. Central Bank Buying: Global central banks, including RBI, continue diversifying reserves by adding gold.
5. Falling Interest Rates: Lower real interest rates make gold more attractive since it doesn’t yield dividends or interest.
6. Domestic Demand Surge: Festivals, weddings, and rising middle-class incomes in India fuel consistent demand.

Cube Wealth on Gold: Investment Opportunities

At Cube Wealth, our wealth coaches emphasise that gold is less about short-term trading and more about long-term stability. Here’s what they suggest:

• Diversification Tool: Keep 5–10% of your portfolio in gold to hedge against market risk.
• Best Formats for Investors: For liquidity, digital gold or ETFs. For tax efficiency,
• Sovereign Gold Bonds (SGBs): For jewellery lovers, physical gold still works.
• Entry Point: Don’t obsess about timing. Gold works best when held consistently over years, not months.

Gold vs Other Investments: Quick Comparison

One question we get often is Will gold prices increase or decrease in India and how does it stack up against other asset classes? Here’s a simple comparison table:

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Takeaway: Gold is not about “beating” equities or real estate — it’s about stabilising your portfolio during uncertainty.

The Gold-to-Silver Ratio (GSR)

The Gold-to-Silver Ratio (GSR) is a simple but powerful metric. As of September 2025, the ratio is hovering around 80:1, meaning one ounce of gold buys 80 ounces of silver.

• Historical Average: Closer to 60:1.
• What It Means: A higher GSR suggests silver is undervalued compared to gold.
• Investor Angle: If you’re bullish on industrial growth, silver could be a high-risk, high-reward complement to gold.

RBI and Sovereign Gold Bonds: What’s Happening?

In August 2025, the RBI announced early redemption of certain Sovereign Gold Bonds (SGBs) and a plan to discontinue new issuances. Why?

1. Liquidity Pressure: Premature liquidation helps manage government borrowing costs.
2. Strategic Policy Shift: Authorities want investors to move towards regulated digital gold and ETFs.
3. Opportunity Cost: Paying 2.5% annual interest plus tax-free maturity benefits made SGBs less favourable for the government.

Impact for Investors: If you hold SGBs, you may get early exits at current market prices — which could be beneficial given today’s highs. But for future allocations, digital gold and ETFs may become the go-to options.

Future Outlook: Will Gold Prices Keep Rising?

While no one can perfectly predict prices, here are key trends:

• Global Debt & Inflation Risks: Supportive of higher gold prices.
• Geopolitical Uncertainty: Likely to sustain safe-haven demand.
• Rupee vs Dollar: A weaker rupee could keep domestic gold prices elevated.
• Profit-Booking: Short-term corrections are likely when markets stabilise.

Our View: Investors should treat gold as a long-term insurance policy, not a get-rich-quick scheme.

FAQs

1. Why are gold prices increasing in India in 2025?

Because of global market volatility, rupee weakness, central bank buying, and high domestic demand.

2. Is gold a good investment now?

Yes, as part of a diversified portfolio. Experts suggest 5–10% allocation.

3. What is the gold-to-silver ratio?

It measures how many ounces of silver equal one ounce of gold. Currently ~80:1, suggesting silver is relatively undervalued.

4. Why is RBI discontinuing Sovereign Gold Bonds?

To reduce its interest burden and shift investors towards more liquid gold instruments like ETFs.

5. Gold vs equity — which is better?

Equities build wealth long term; gold protects wealth during uncertainty. Ideally, investors should hold both.

Final Thoughts

Gold’s surge in 2025 isn’t just about weddings or jewellery demand. It’s a story of geopolitics, markets, and money itself. For Indian investors, the opportunity lies in blending gold with equities, bonds, and real estate for a portfolio that can withstand shocks.

Speak to a Cube Wealth coach today and explore how gold fits into your financial plan.