Will 10 gm Gold Touch ₹2 Lakh in 5 Years? Should You Sell, Hold, or Buy?
Will 10 gm Gold Touch ₹2 Lakh in 5 Years? Should You Sell, Hold, or Buy?
Experts remain bullish, but advise a staggered investment approach as gold hovers at record highs.
Gold has witnessed a dramatic rally over the last five years, driven by geopolitical tensions, global economic uncertainties, and safe-haven demand. On September 19, 2020, 24K spot gold on the Multi Commodity Exchange (MCX) traded at ₹51,619 per 10 grams. Today, it stands at ₹1,09,388—marking a 112% gain over five years and a 50% surge in just the past year.
With the festive and wedding season ahead, investors and buyers alike are asking: can gold touch ₹2 lakh per 10 grams in the next five years, and should they sell, hold, or buy at current levels?
Why Gold is Rising
The past half-decade has seen multiple triggers for the yellow metal’s surge—from the Covid-19 pandemic and the Russia-Ukraine war to US tariffs and global uncertainty. Meanwhile, equities have struggled: Nifty 50 has delivered nearly zero returns over the past year, nudging investors toward gold. Gold ETFs, mirroring this trend, have posted returns of over 47% in the last 12 months, according to Value Research data.
“More investment in gold ETFs can act as a trigger for continued price rises,” says Maneesh Sharma, AVP-Commodities & Currencies at Anand Rathi. Trivesh D, COO at Tradejini, echoes this, noting that ETF demand in India has surged 36% year-on-year, underscoring the long-term strength of the asset.
Global Appetite and Price Outlook
Globally, US-listed gold ETFs now hold a record $215 billion in assets under management. Analysts believe these inflows suggest more room for upside. In the near term, experts expect gold to climb another 15–20% if the US Federal Reserve implements rate cuts, weakening the dollar and boosting gold.
Looking further ahead, Swiss Asia has made one of the boldest projections: gold could rise between 119% and 229% by 2032, pushing prices to anywhere between ₹2.40 lakh and ₹3.61 lakh per 10 grams over the next seven years.
Should You Sell, Hold, or Buy?
Experts caution against all-in bets at record levels. The general advice is to limit gold exposure to 5–10% of one’s portfolio, depending on risk appetite.
- If gold is already overweight in your portfolio, consider trimming and reallocating to underperforming assets.
- If gold holdings are balanced, continue holding.
- If underweight in gold, experts recommend staggered buying—allocate about 20–25% now, add more if prices dip 2–5%, and keep cash reserves for future opportunities.
Darshan Desai of Aspect Bullion & Refinery adds that staggered buying in the coming weeks could also align with the festive season, traditionally seen as auspicious for gold purchases.
While no one can guarantee whether gold will cross ₹2 lakh per 10 grams within five years, the long-term outlook remains optimistic. The prudent path, experts say, is to invest gradually, avoid panic selling, and maintain discipline in portfolio allocation.
Disclaimer:
The views, forecasts, and projections in this article are based on public information and expert opinions at the time of writing. Gold prices are influenced by multiple unpredictable factors, including global economic conditions, currency fluctuations, monetary policies, geopolitical events, and market sentiment. Past performance is not indicative of future results. Any investment decision you make should be based on your own research or after consulting a qualified financial advisor.
