Walk through any Indian street right now, and you’ll hear one common buzz: Gold is back in fashion, and this time not just for weddings. Investors who once swore by stocks and mutual funds are now rushing to jewellers, bullion shops, and even digital gold apps. Dalal Street suddenly feels a little deserted, while the jeweller’s street is brimming with excitement. And honestly, the numbers tell you why.
Gold Prices: On Fire!
As of September 16, 2025, gold prices are at historic highs:
- Spot price: ~$3,694/oz (USD)
- India price: ~₹111,930 per 10 grams (24K)
Just in the last one month, gold has returned 10.5% in INR terms. If you zoom out, the last one year return is a staggering 48% in India. To put that in perspective, Nifty and Sensex have barely moved in comparison. No wonder people are asking – Is gold the new stock market?
Analysts Are Bullish
Brokerages, banks, and research firms are turning increasingly positive on the yellow metal.
- Motilal Oswal recently noted that “safe-haven demand and weakening global equity sentiment” could drive gold past ₹1.3–1.4 lakh per 10g in the next 12 months.
- ICICI Direct has a target of ₹1.5 lakh per 10g by mid-2026, citing strong central bank buying and geopolitical risks.
- A few global analysts are even more aggressive. JP Morgan expects gold could touch $4,500/oz (roughly ₹1.35–1.4 lakh per 10g in India) if US interest rates start falling faster than expected.
- And yes, there are whispers in the street that ₹2 lakh per 10g by 2026 is not impossible if the bull run continues.
For many Indians, that’s enough reason to buy more bangles, coins, or ETFs.
Why Is Gold Shining So Bright?
Several factors are contributing to this rally:
- Global Uncertainty – Wars, elections, trade tensions… the world feels messy. When uncertainty rises, gold shines as the “safe-haven” asset.
- Central Bank Buying – Countries like China, Russia, and even India have been adding more gold reserves, pushing demand higher.
- Weak Equity Sentiment – Indian equities have been in a sideways-to-bearish trend for months. Retail investors are tired of flat returns and are chasing momentum in gold.
- Rupee Depreciation – A weaker rupee against the dollar adds an extra kicker to gold prices in India. Even if global prices remain flat, domestic gold often appreciates due to currency movements.
- Cultural Comfort – Unlike stocks or bonds, gold has always been a “trustworthy” investment in Indian households. From weddings to festivals like Diwali and Dhanteras, the cultural pull is undeniable.
Gold vs Stocks – Who Wins?
The stock market has historically given higher long-term returns, but the present moment tells a different story. Over the last year, Gold has given a return of around 48% in while, while returns in Nifty/Sensex is negative or close to zero. Clearly, gold has outshined equities.
However, experienced investors warn against dumping equities completely. Stocks and mutual funds are wealth creators in the long run, while gold primarily acts as a hedge. Ideally, a smart portfolio balances both.
Should You Buy Gold Now?
Here’s the million-rupee question: Is it too late to buy?
- If you’re chasing quick profits, remember that gold is already near all-time highs. Any correction in global markets or strength in the dollar could trigger short-term pullbacks.
- For long-term investors, however, gold remains a strong hedge against inflation and economic shocks. Even if prices don’t double overnight, gold can protect purchasing power.
Financial planners usually advise allocating 10–15% of your portfolio to gold, whether through physical gold, gold ETFs, or sovereign gold bonds (SGBs).
The Road Ahead
If analysts are right, we could be looking at gold near ₹1.3–1.5 lakh per 10g in the next 12–18 months. Some bold predictions even eye the ₹2 lakh mark. But remember, predictions are not guarantees. Just like equities, gold has its ups and downs. The best approach is to stay diversified, invest in small amounts systematically, and avoid chasing FOMO (fear of missing out).
Final Thoughts
Gold is glittering brighter than ever. With nearly 50% returns in one year, it’s hard to ignore. Indians, who have always had an emotional and financial attachment to gold, now find both their hearts and wallets pulling them in the same direction. But ask yourself: Do you want to just follow the crowd, or invest with a strategy?
Gold might well be the king of returns today, but wise investors know – kings change, empires shift, and balance is everything.
Kritesh (Tweet here) is the Founder & CEO of Trade Brains & FinGrad. He is an NSE Certified Equity Fundamental Analyst with +7 Years of Experience in Share Market Investing. Kritesh frequently writes about Share Market Investing and IPOs and publishes his personal insights on the market.
