Gold pays off! Rs 1,000 monthly investment yields Rs 4 lakh in a decade

Gold prices surged from Rs 26,500 in 2015 to Rs 71,000 in 2025. Modern investment options have made gold a smart investment.

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1000 investment in gold

Gold has long been a safe and rewarding investment in Indian households. While many chase mutual funds or stocks, gold quietly delivers steady returns over time. If someone had invested just Rs 1,000 monthly in gold for the past 10 years, they'd be sitting on nice gains today. In 2015, the average price of 24K gold was around Rs 26,500 per 10 grams.

Fast forward to 2025, and it's near Rs 71,000 per 10 grams. That's almost a three-fold increase in value for gold bought in 2015. Now imagine that Rs 1,000 invested monthly instead of as a lump sum. Over 10 years, that's Rs 1.2 lakh invested. Today, it could have grown to over Rs 4 lakh based on returns.

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Year-on-year growth

Gold's growth story shines when you look at its year-on-year performance. Between 2015 and 2020, gold moved steadily. But its big moments came during global uncertainty like the COVID-19 pandemic in 2020 and inflation worries in 2022–2023. For example, gold prices jumped from Rs 35,000 in 2019 to Rs 48,500 in 2020. That's nearly a 38% jump in a single year.

Even in years when stock markets dipped, gold turned out to be a jackpot for investors. This reliability is what makes gold a valuable part of any portfolio. In fact, over the past 10 years, gold has delivered an average CAGR of 10.5%. Much higher than bank FDs or savings accounts. And sometimes, more stable than equity-based returns.

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More than gold jewelry

Gone are the days when gold investment meant only buying jewelry. Today, Indian investors have access to modern, flexible gold investment options. Digital gold lets you buy small amounts online through apps like PhonePe and Paytm. Gold ETFs and mutual funds allow monthly SIPs, just like the stock market. For long-term, tax-free gains, Sovereign Gold Bonds (SGBs) are great.

They not only track the price of gold but also offer 2.5% annual interest and tax-free maturity after 8 years. These options make gold a smart, liquid asset, bypassing storage worries and making charges. Even with Rs 1,000 a month, anyone can invest in gold easily and conveniently today.

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Small investment, big impact

A small SIP of Rs 1,000 monthly over 10 years (totaling Rs 1.2 lakh) could have grown to Rs 3.5 lakh to Rs 4.2 lakh. Especially if invested in ETFs or SGBs, depending on timing and entry price. That's 3X–4X growth. For someone starting with little capital, this is powerful proof of how small, disciplined investments work wonders over time.

Unlike stocks, which need timing and market knowledge, gold just needs patience. Even if you miss the peaks, gold rarely disappoints in the long run. This makes it a perfect starter asset. Low risk, easy to buy.

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Why should gold be in your portfolio?

It performs well during financial crises, wars, inflation, and currency devaluation. As the rupee has weakened over the years, gold has become even more valuable in India. In 2025 and beyond, financial advisors recommend holding at least 10–15% of your portfolio in gold.

Especially through SIPs, SGBs, or ETFs. If you're unsure where to invest or have limited funds, consider starting with a Rs 1,000 SIP in gold.