October 10, 2025

While stock investors look for multibaggers, gold quietly steals the show for long-term holders. India's oldest gold ETF, Nippon India ETF Gold BeES, has dazzled investors with a 950% return since July 2007! Imagine turning Rs 10 lakh into over Rs 1 crore in 18 years—a true treasure chest. Gold is breaking records everywhere. In India, gold prices soared past Rs 1.22 lakh per 10 grams in the futures market. Silver joined the party too, jumping above Rs 1.5 lakh per kg. Globally, gold is sparkling above $4,000 an ounce! Why? Investors run to gold as a safe haven amidst inflation, global tensions, and shaky stocks. The biggest fan? Billionaire Ray Dalio! He told Bloomberg, "Gold is a very excellent diversifier of the portfolio." He recommends about 15% of an investor's portfolio go to gold. Why? Because while stocks and other assets depend heavily on credit, gold shines when others falter. Dalio also warned about "dead assets" like government debt and low credit spreads, shining more light on gold's bright possibilities. Launched in 2007, the Gold BeES ETF has attracted nearly Rs 24,000 crore so far. In just the past year, it zoomed up over 56%! Overall, it grew at a steady 13.5% CAGR for 18 years, matching gold’s legendary safe-haven moves during crises like the dot-com bust, 2008 crash, and COVID-19 shock. Gold ETFs in India hit a record $10 billion in assets in September, with money flowing in faster than ever. This year alone, $2.18 billion poured into Indian gold ETFs, smashing earlier records. Local gold prices surged 60% this year and hit Rs 1.22 lakh per 10 grams recently. Why this rush? A major reason is de-dollarisation. As the US dollar share in central bank reserves dips to 43%, countries like China and Russia are snapping up gold. Russia bought 274 tonnes in 2018, selling off US treasuries to do it. Central banks' gold buying nearly doubled in 10 years, giving gold a rock-solid support. Gold’s strong run is fueled by geopolitical fears, central bank buying, hopes for Fed rate cuts, and doubts about Fed independence. Meanwhile, the US government shutdown delayed key economic data, but traders still expect rate cuts soon. Tata Mutual Fund suggests investors stick with gold and keep buying on price dips. They say, "The overall market environment is going to be favorable for a strategic allocation in Gold as a long-term investment in portfolio considering its hedge against inflation, Geo-political uncertainty and currency depreciation." They also recommend a 50:50 mix of gold and silver in future investments, as silver looks attractive too. India imports about 86% of its gold, and when the Indian rupee falls against the dollar, gold prices rise even more locally, boosting demand and price. This metals rally signals deep uncertainty globally. Investors are urged to be wise and cautious with their allocations. Silver outshines gold in recent gains, adding more spice to the precious metals story. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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Tags: Gold returns, Nippon india etf gold bees, Ray dalio, Gold price record, De-dollarisation, Indian gold etfs,