Let’s understand what’s driving these price changes and whether gold coins are a smart buy right now
Gold prices in India are now very close to touching the ₹1 lakh mark for 10 grams of 24-carat gold. As of May 26, 2025, the price is around ₹98,080 per 10 grams. This sudden rise has caught the attention of both investors and the general public. Many are now wondering whether it is a good time to buy gold coins or if one should wait for prices to settle down.
Let’s understand what’s driving these price changes and whether gold coins are a smart buy right now.
Why Are Gold Prices Rising So Fast
There are a few major reasons behind the sharp increase in gold prices:
Global Uncertainty: Events like wars, international tensions, and trade conflicts make people nervous about the economy. When people feel unsure, they often turn to gold. This is because gold is seen as a “safe” place to keep money during unstable times. The ongoing Russia-Ukraine war and global trade tensions, especially involving major economies like the United States and China, have increased the demand for gold.
Indian Rupee vs US Dollar: In India, gold is priced based on international rates and the exchange rate between the Indian rupee and the US dollar. When the rupee weakens against the dollar, gold becomes more expensive in India, even if the international price remains steady. Recently, fluctuations in the currency market have added to the rise in gold prices.
Inflation Protection: As the cost of goods and services keeps increasing (known as inflation), many investors buy gold to protect the value of their money. Gold tends to hold its value over time, making it a popular choice during high inflation.
Gold for Investment vs Gold for Jewelry
Not everyone buys gold for the same reason. Some buy it as jewelry for weddings and festivals, while others see it as an investment.
Right now, jewelry demand has slowed down because of high prices. People are hesitant to buy gold ornaments when the prices are near all-time highs.
However, buying gold coins and bars has become more popular. Investors are more interested in gold coins because they are easy to buy, store, and sell when needed. Gold coins are available in small weights like 1 gram, 5 grams, and 10 grams, which makes them affordable and practical for many types of investors.
What Are the Experts Saying
Market experts believe that gold will continue to perform well in 2025. Many expect gold prices to rise further, especially if global tensions continue or if inflation remains high.
Some even say that gold might do better than stock markets this year. This means that returns from gold could be higher than from investments like mutual funds or shares.
However, not all experts are completely positive. A few believe that gold prices could come down slightly in the short term. Prices may fall to ₹94,500–₹94,800 per 10 grams before going up again. This means there might be some ups and downs before gold settles at a new price range.
Is This the Right Time to Buy Gold Coins
Gold coins can be a good option for many reasons, but there are also some things to be careful about.
Why Buying Gold Coins May Be a Good Idea:
Safe and Reliable: Gold has always been trusted as a long-term investment. During tough times, gold holds its value better than many other things.
Easy to Sell: Gold coins can be sold almost anywhere. They are also accepted by banks, jewelers, and pawn shops.
Flexible Investment: Coins come in many sizes. Even small investors can buy a 1-gram coin and gradually build up their savings in gold.
Physical Asset: Some investors prefer holding something they can touch and keep safe at home or in a locker.
Things to Think About Before Buying
High Prices: Gold is currently near its highest-ever price. There’s a chance it could come down a little in the future.
Storage and Safety: Physical gold needs to be stored safely. There’s always the risk of theft or loss if not handled properly.
Other Investment Options: Gold coins are just one way to invest in gold. There are other options like Sovereign Gold Bonds (SGBs) and Gold Exchange-Traded Funds (ETFs). These offer added benefits such as interest payments (in SGBs) or no need for physical storage.
Who Should Consider Buying Gold Coins Now
Gold coins may suit people who:
Want to hold a long-term asset.
Prefer physical gold over digital or paper-based investments.
Looking to save safely and traditionally.
Want to diversify their portfolio by adding a non-stock investment.
For short-term profits, gold coins may not be ideal. Prices could drop or remain flat for some time before rising again. But for those who want to secure their money over the long term, especially during global instability, gold coins remain a reliable choice.
Gold Prices So Far in 2025
In just the first five months of 2025, gold prices in India have already gone up by 23%. This rise reflects both international price trends and local market conditions. If the same trend continues, gold might cross the ₹1 lakh per 10 grams level soon.
Central banks across the world are also buying more gold. This further supports the global price rise, as demand increases on a large scale.
Final Thoughts
Gold nearing ₹1 lakh per 10 grams is a sign of how valuable and trusted the metal remains. Global issues, inflation, and currency changes are all pushing gold prices higher.
Buying gold coins now can be a smart decision for long-term safety and wealth protection. However, it’s important to be aware of the risks and consider other options too. Prices might not rise every day, and short-term drops are always possible.
Investors should match their gold investment with their financial goals. Gold coins can be a solid part of a diversified investment plan — especially when looking for stability during uncertain times.
