The Indian metal market is a promising sector to invest in as it provides a good balance between the prospects of growth and stability in dynamic economic conditions and a changing geopolitical environment. Metals such as gold, silver, copper, etc, have gained renewed significance in 2025, amidst growing inflation and India's push towards infrastructural growth and green energy initiatives.
Now that the gold exchange traded funds (GETFs) are being sold in the market, let's look at a few things to understand them better.
The total traded value of gold ETF on the NSE stood at a record value of Rs 1,337 crore, while the BSE recorded a turnover of Rs 894.55 crore.
The recent correction suggests that while precious metals hedge geopolitical tension and inflation, they are not immune to sharp short-term corrections and profit-booking.
The inflows meant assets under management of gold ETFs climbed by over 4 per cent to Rs 13,503 crore at the end of August from Rs 12,941 crore at July-end.
Gold prices are likely to trade firm next week as traders await key economic data, including US inflation numbers, for fresh cues on interest rate outlook, while silver may remain volatile amid shifting risk sentiment and speculative activity, analysts said.
This was the second consecutive yearly outflow from such funds.
Investors globally have found solace in gold in the last one year when major world economies slipped into recession. Sample this: According to World Gold Council data, investment by exchange traded funds in gold was 150 tonnes in the third quarter
They help diversify portfolio and are less risky.
'People become guided by emotions, fear of missing out, and greed. They tend to invest in booming sectors that may prove exceptionally expensive.' 'Typically, that represents the peak, and subsequently, they lose substantially.'
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Gold and silver prices are poised to maintain their record-setting rally in the coming week as investors focus on global inflation data and key macroeconomic indicators that shape central bank policy paths, analysts said.
Bitcoin has fallen from its peak of $1,26,251.3 on October 6, 2025, to $65,405.5, a decline of 48.2 per cent. Investors must recognise that sharp volatility is inherent to Bitcoin and avoid kneejerk reactions.
Apart from the emotional value attached to buying gold, the yellow metal offers protection against inflation, interest rate spikes, currency and geopolitical risks, says Anamika Pareek.
In 2013-14, the funds witnessed outflow of Rs 2,293 crore
Rediff explains why the system, not the Budget, is the problem.
Geopolitical tensions in different parts of the globe and slowdown in global economy led investors to opt for safe-haven like gold over the last one year.
This translates into an annual return of 40 per cent, suggests a recent note by the World Gold Council.
'For most investors, I recommend a low double-digit allocation (10 to 12 per cent) to gold and silver combined.'
The State Bank of India said on Monday it would launch a gold exchange traded fund in 2008. "We are examining this product in our mutual fund company and we are hopeful we should be able to come out with an ETF next year," O P Bhatt, SBI chairman said at a conference in Mumbai.
Gold and silver prices are expected to maintain their upward trajectory this week, but may see late profit-booking amid the release of a series of crucial global economic indicators, analysts said. On the economic front, traders will closely monitor the manufacturing/ services PMI data from across regions and the US non-farm payrolls/ employment data along with consumer confidence for the month of September and speeches from several Federal Reserve officials, they added.
'AUM reached an all-time high of Rs 79.9 trillion in October 2025, driven by strong retail participation and record SIP inflows of Rs 29,529 crore from over 94.5 million contributing accounts.'
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
'When markets go into a budget with excessive optimism, the risk of disappointment is higher.'
'New investors should enter gradually and stay cautious.' 'Silver is a structural multi-year story, but timing matters in a high-volatility metal.'
'Investors' decisions should reflect their financial goals, risk tolerance, and the amount of gold already present in their portfolio.'
Gold prices dropped by Rs 4,100 to Rs 121,800 per 10 grams in the national capital and slipped below $4,000 an ounce in the global markets on Tuesday as easing US-China trade tensions dampened safe-haven appeal. According to the All India Sarafa Association, the precious metal had closed at Rs 125,900 per 10 grams on Monday.
New investors should not allow themselves to fall prey to FOMO and rush headlong into gold.
Most investors should have a 5% to 10% allocation to gold for diversification. They should stagger their investments to mitigate timing risk.
As the rally in precious metals takes centre stage in 2025, most analysts recommend a larger allocation to gold over silver despite the latter's outperformance this year. In the current calendar year (CY25), spot gold prices in dollar terms rallied
'If gold's recent surge has increased its allocation beyond 15 per cent in your portfolio, now may be a good time to rebalance.'
'...a mix of asset classes.' 'Include equities for growth (across market caps), debt for stability and liquidity, gold as a hedge against macro and currency risk, and global assets for geographical and economic diversification.'
According to the report, benchmark gold ETFs have increased to 2.03 tonnes in May from 1.5 tonnes in the corresponding period last year. Whereas gold ETFs at UTI, Reliance Capital and Kotak remained at 1.32 tonnes, 1.23 tonnes and 0.34 tonnes respectively during May period, it said.
Provision to invest in gold deposit schemes introduces credit risk to such funds
Silver prices extended their record-breaking rally for a sixth straight session on Monday, surging 6 per cent to touch a lifetime high of Rs 2,54,174 per kilogram in futures trade amid strong investor demand and bullish global trends. On the Multi Commodity Exchange (MCX), silver futures for March delivery surged Rs 14,387, or 6 per cent, to hit a new record of Rs 2,54,174 per kilogram.
Investors must account for currency depreciation in their financial plans and use instruments that can cushion the erosion in purchasing power.
Passive funds appeal to investors seeking to avoid the risk of underperformance by the fund manager and minimise the need for frequent chopping and changing of funds.
Equity mutual funds attracted Rs 29,911 crore in November, marking a 21 per cent increase from the preceding month, according to data released by industry body Amfi on Thursday. This rise in inflows comes after three consecutive months of decline, signalling an improvement in investor sentiment.
Move over equity markets, mutual funds and bonds. Investors across India are these days picking up and trading in the latest investment avenue in town: the Gold Exchange Traded Funds.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
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