Rs 1 lakh+ and rising: How long can gold keep shining? Expert on tweaks for maximising gains
Gold and silver on the Multi Commodity Exchange (MCX) have soared over 50% in the past year, sharply outperforming equities. MCX gold gained 52% and silver rose 50%, while Sensex and Nifty stayed nearly flat.
- Sep 11, 2025,
- Updated Sep 11, 2025 2:53 PM IST
Gold has once again proven itself as a safe haven asset amid heightened global uncertainty. Gold and silver on the Multi-Commodity Exchange (MCX) have soared over 50% in the past year, sharply outperforming equities. MCX gold gained 52% and silver rose 50%, while Sensex and Nifty stayed nearly flat. The rally is fueled by central bank buying, ETF inflows, Fed rate-cut expectations, and geopolitical tensions. Though gold remains the safe-haven of choice, experts caution that fresh allocations at record highs could expose investors to heightened volatility.
In a podcast on YouTube, finance coach Sanjay Kathuria said the yellow metal has historically offered stability during times of crisis and should remain a key part of every investor’s portfolio.
“Whenever gold prices rise, people assume it cannot go higher,” Kathuria said. “When it touched Rs 25,000, many thought it was overpriced. At Rs 50,000 and then Rs 60,000, the sentiment was the same. Even at Rs 75,000, doubts persisted. But this year, gold began at Rs 74,000 and surged to Rs 1 lakh. That is the nature of gold — it thrives in uncertain times.”
Kathuria emphasized that while gold can deliver strong returns, it is not immune to corrections. “There have been phases when gold has crashed by nearly 50% over two to three years. But rebounds are equally strong. Gold benefits globally whenever there is uncertainty — wars, conflicts, or geopolitical instability. At present, unrest is ongoing in multiple regions — whether the Middle East, Russia-Ukraine, or even tensions closer home. As long as uncertainty remains, gold will stay relevant.”
Portfolio allocation advice
Kathuria advises investors to treat gold as part of a balanced portfolio rather than the sole investment avenue. “Gold should comprise about 10–15% of your portfolio. I often call it a cushion. When everything else falls, gold provides that safety net.”
He added that the mode of investment matters. “If you’re buying for investment, gold ETFs are the most efficient option. Digital gold is also available, though it attracts GST. Physical gold comes with storage and safety issues. Jewelry should be bought only if you intend to wear it, not as an investment. ETFs are accessible — you can start with as little as ₹10, which makes them ideal for small investors.”
Gold vs real estate and land
Kathuria also compared gold to other asset classes. “Some people say they would rather buy land or real estate instead of mutual funds. That’s fine if you have the resources. But in India, nearly 90% of people earn less than ₹25,000 per month. A basic land plot today costs at least ₹25–30 lakh, and urban real estate is far more expensive. For small savers, mutual funds and gold ETFs are practical entry points to build the habit of investing.”
Risk and investor psychology
Highlighting the importance of risk tolerance, Kathuria said, “The first question I ask clients is: how much red can you handle? Can you tolerate seeing your portfolio down 20% or 50%? If not, you must reduce exposure to equities. Even a portfolio with 80% in bonds and only 20% in equity will see limited downside. The idea is to align investments with personal comfort levels.”
Mutual fund discipline
Kathuria also warned against over-diversification. “One client came to me holding 54 mutual funds. That’s not a portfolio — that’s a zoo. For each financial goal, three to four mutual funds are sufficient. Anything beyond that creates clutter and confusion.”
He concluded that discipline and clarity are what separate successful investors. “Some clients maintain detailed Excel sheets of their assets, liabilities, income, and expenses. That clarity helps them understand where they stand and where they’re headed. Gold, equities, bonds — all have their place, but without discipline, no portfolio can succeed.”
Gold has once again proven itself as a safe haven asset amid heightened global uncertainty. Gold and silver on the Multi-Commodity Exchange (MCX) have soared over 50% in the past year, sharply outperforming equities. MCX gold gained 52% and silver rose 50%, while Sensex and Nifty stayed nearly flat. The rally is fueled by central bank buying, ETF inflows, Fed rate-cut expectations, and geopolitical tensions. Though gold remains the safe-haven of choice, experts caution that fresh allocations at record highs could expose investors to heightened volatility.
In a podcast on YouTube, finance coach Sanjay Kathuria said the yellow metal has historically offered stability during times of crisis and should remain a key part of every investor’s portfolio.
“Whenever gold prices rise, people assume it cannot go higher,” Kathuria said. “When it touched Rs 25,000, many thought it was overpriced. At Rs 50,000 and then Rs 60,000, the sentiment was the same. Even at Rs 75,000, doubts persisted. But this year, gold began at Rs 74,000 and surged to Rs 1 lakh. That is the nature of gold — it thrives in uncertain times.”
Kathuria emphasized that while gold can deliver strong returns, it is not immune to corrections. “There have been phases when gold has crashed by nearly 50% over two to three years. But rebounds are equally strong. Gold benefits globally whenever there is uncertainty — wars, conflicts, or geopolitical instability. At present, unrest is ongoing in multiple regions — whether the Middle East, Russia-Ukraine, or even tensions closer home. As long as uncertainty remains, gold will stay relevant.”
Portfolio allocation advice
Kathuria advises investors to treat gold as part of a balanced portfolio rather than the sole investment avenue. “Gold should comprise about 10–15% of your portfolio. I often call it a cushion. When everything else falls, gold provides that safety net.”
He added that the mode of investment matters. “If you’re buying for investment, gold ETFs are the most efficient option. Digital gold is also available, though it attracts GST. Physical gold comes with storage and safety issues. Jewelry should be bought only if you intend to wear it, not as an investment. ETFs are accessible — you can start with as little as ₹10, which makes them ideal for small investors.”
Gold vs real estate and land
Kathuria also compared gold to other asset classes. “Some people say they would rather buy land or real estate instead of mutual funds. That’s fine if you have the resources. But in India, nearly 90% of people earn less than ₹25,000 per month. A basic land plot today costs at least ₹25–30 lakh, and urban real estate is far more expensive. For small savers, mutual funds and gold ETFs are practical entry points to build the habit of investing.”
Risk and investor psychology
Highlighting the importance of risk tolerance, Kathuria said, “The first question I ask clients is: how much red can you handle? Can you tolerate seeing your portfolio down 20% or 50%? If not, you must reduce exposure to equities. Even a portfolio with 80% in bonds and only 20% in equity will see limited downside. The idea is to align investments with personal comfort levels.”
Mutual fund discipline
Kathuria also warned against over-diversification. “One client came to me holding 54 mutual funds. That’s not a portfolio — that’s a zoo. For each financial goal, three to four mutual funds are sufficient. Anything beyond that creates clutter and confusion.”
He concluded that discipline and clarity are what separate successful investors. “Some clients maintain detailed Excel sheets of their assets, liabilities, income, and expenses. That clarity helps them understand where they stand and where they’re headed. Gold, equities, bonds — all have their place, but without discipline, no portfolio can succeed.”