Gold Near ₹1.08L/10g: Should You Buy More Now?

Gold and silver are rising on global fears and inflation worries. Before you rush to buy physical gold, understand that GST, making charges, and timing risk can erode your returns. Sovereign Gold Bonds or Gold ETFs are smarter, tax-efficient alternatives for most Indian investors.

Here's what happened: Gold prices in India are hovering near record highs around ₹1.08 lakh per 10 grams, driven by global geopolitical tensions and uncertainty around US inflation data.. Silver has also risen sharply alongside gold, as investors globally move toward safe-haven assets when economic or political uncertainty spikes.. Historically, gold rallies triggered by geopolitical fear tend to be sharp but short-lived — prices often correct 8–15% once the trigger event stabilises or resolves..

What you should do: Check your current gold allocation: if it exceeds 10% of your total portfolio, consider trimming — not adding — at these elevated price levels.. Compare Sovereign Gold Bonds (SGBs) or Gold ETFs before buying physical gold; both avoid GST, making charges, and storage risk while giving you the same price upside.. Avoid taking a personal loan or credit card EMI to buy gold at peak prices — the interest cost (12–24% p.a.) will easily outpace gold's near-term return if prices correct..

SGBs held until the 8-year maturity are completely exempt from capital gains tax — even if gold doubles in price. No other gold investment form gives you this tax-free exit.