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Gold is currently at a historical high. Want to invest in gold without buying jewellery?

  //stocks-investing.news-articles.net/content/202 .. -to-invest-in-gold-without-buying-jewellery.html
  Published in Stocks and Investing on Friday, October 3rd 2025 at 22:59 GMT by The Financial Express
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Gold at a Historical High – How to Invest Without Buying Jewellery

Gold has long been revered as a safe‑haven asset, a store of value that transcends borders and cultures. In the past few months the metal’s price has surged to levels not seen since the early 2020s, igniting a wave of interest among retail investors who wonder how to tap into this rally without spending a fortune on diamond‑stitched ornaments. The Financial Express article, “Gold is currently at a historical high; want to invest in gold without buying jewellery?” dives deep into the market dynamics that are driving the price climb and offers a practical guide to the myriad ways you can get your hands on gold without having to go to the jeweller’s.

1. The Price Surge – What’s Behind the Numbers?

The article opens by quoting the most recent spot price of gold, which sits at ₹55,500 per 10‑gram (roughly ₹5,550 per gram). That figure represents a 15‑20% jump from the 2022 highs and is close to the ₹5,400‑₹5,500 per gram plateau that was seen during the peak of the global economic slowdown in early 2021.

Several interrelated factors are feeding this rise:

• Currency depreciation – The rupee has weakened against the dollar for the past 18 months. Since gold is priced in USD, a weaker rupee translates directly into higher domestic prices.
• Inflation fears – India’s consumer‑price inflation hovered around 6.5% last year, prompting a search for real‑asset hedges. Gold’s inverse relationship with inflation makes it an attractive option.
• Geopolitical uncertainty – Ongoing tensions in the Middle East, alongside the escalating standoff between India and China, have increased demand for “risk‑off” assets.
• Rising global interest rates – While higher rates generally erode gold’s appeal, the net effect in the Indian context has been a net inflow, as investors still seek safety amid tightening money markets.

The article points out that even with the recent dip in global gold prices (a 3% decline in July), the domestic price has remained resilient because of the compounded effect of the above drivers.

2. Why Avoid Jewellery?

Although buying a gold necklace or a pair of earrings might seem like a straightforward way to “own” gold, the Financial Express piece cautions that the retail markup on jewellery can range from 10% to 20% above the spot price. That markup translates into a hidden tax bill and, more importantly, reduces your effective yield.

In addition, jewellery is illiquid – you’re tied up in a physical asset that is often difficult to sell quickly, and its resale value can be significantly lower than the purchase price once you factor in taxes and dealer commissions. For an investor looking for a flexible or quick‑turn exposure, other instruments are more suitable.

3. Alternative Investment Vehicles

a. Gold Bonds (Government of India)

One of the most popular ways for retail investors to get gold exposure without buying jewellery is the Gold Bond Scheme launched by the RBI. The article explains:

• Structure – The government issues bonds with a face value of ₹10,000 and a maturity of 8 years. These bonds pay a semi‑annual coupon of 2.5% of the face value, and at maturity the investor gets a premium of 2.5% of the face value above the spot price.
• Taxation – The interest income is tax‑free up to the maturity period, and the capital gains are also tax‑exempt. This makes Gold Bonds an attractive, low‑risk vehicle.
• Liquidity – The bonds can be traded on the NSE and BSE, albeit at a price that may lag the spot price.

b. Gold ETFs and Mutual Funds

Gold Exchange‑Traded Funds (ETFs) are structured to track the price of gold, but instead of storing physical bullion, the underlying asset is typically gold futures contracts. The article cites two prominent ETFs:

• “SBI Gold ETF” – Tracks the price of gold via futures contracts, with an expense ratio of about 0.25% annually.
• “Motilal Oswal Gold ETF” – Similar structure, with an expense ratio of 0.3%.

Gold mutual funds (like the “Nippon India Gold Fund” or “ICICI Prudential Gold Fund”) invest in gold mining companies rather than the metal itself, offering exposure to the sector’s growth dynamics.

c. Digital Gold

The Digital Gold segment has exploded in India after RBI eased regulations in 2018. The article explains how platforms such as Paytm, Google Pay, PhonePe, and Nuo allow you to buy gold in grams and store it in a digital vault. Key points:

• Buy in small increments – From 1 gram to 10 grams.
• Physical delivery – When you decide to exit, the platform sends a physical gold bar to your address.
• No hidden costs – The only charges are a nominal fee for buying/selling and storage.

Digital gold is appealing because it offers instant liquidity, low entry thresholds, and no need to maintain a storage space.

d. Physical Gold – Coins and Bars

For those who prefer tangible assets, the article reminds readers that you can buy legal‑mint gold coins (e.g., 1‑gram gold coins) and small bars from reputable banks (SBI, Axis, etc.). These items carry a storage fee if kept in bank vaults, but they avoid the markup associated with jewellery.

4. Risks and Practical Considerations

Even with these safer instruments, gold carries risks that the article does not shy away from:

• Market volatility – Gold’s price can swing dramatically in short periods due to macroeconomic shocks.
• Liquidity risk – While ETFs and bonds are generally liquid, digital gold may have a delay in redemption for the physical gold.
• Counterparty risk – For digital gold platforms, there is a degree of dependence on the provider’s solvency.

The article urges readers to align their gold investment with overall portfolio goals—use gold as a hedge rather than a primary growth engine.

5. Expert Opinions

To provide balanced guidance, the piece cites a RBI analyst who explained that gold is a “complementary asset” for diversification, especially in times of monetary tightening. A portfolio manager from HDFC Mutual Fund added that gold mutual funds can capture mining‑sector growth while keeping the risk profile moderate.

6. Bottom Line: How to Start

1. Assess your objectives – Are you looking for a safe‑haven, a hedge against inflation, or a vehicle for long‑term wealth creation?
2. Choose the right vehicle – Gold bonds for tax‑free income, ETFs for liquid exposure, digital gold for quick entry, or physical gold for a tangible stash.
3. Monitor the market – Keep an eye on the rupee’s movement, inflation data, and global interest rates.
4. Diversify – Consider a mix of gold bonds and digital gold to balance risk and liquidity.

7. Further Reading

The article also includes hyperlinks to related stories that provide deeper insights:

• “Gold Bonds: A Tax‑Free Haven for Retail Investors” – A detailed analysis of the bond’s structure and tax treatment.
• “Digital Gold Platforms: Pros, Cons, and How to Choose” – A comparison of the leading digital gold apps.
• “Gold ETFs vs. Gold Mutual Funds: Which is Better?” – A side‑by‑side review of performance, fees, and liquidity.

These links help readers expand their knowledge beyond the basics and make informed decisions tailored to their financial situation.

Conclusion

Gold’s price has breached historical highs in India, but that doesn’t mean every investor must go to the jeweller’s. The Financial Express article offers a clear roadmap—highlighting the strengths and pitfalls of each investment avenue—from government‑issued gold bonds to the convenience of digital gold. By carefully matching your risk appetite, liquidity needs, and tax considerations to the right instrument, you can enjoy the protective benefits of gold without compromising on flexibility or incurring unnecessary mark‑ups. Whether you’re a seasoned investor or just starting, the current market environment presents a compelling case for diversifying your portfolio with a prudent gold allocation.