Gold & Silver
Portfolio insurance, not a growth engine. 5–10% gold + 2–5% silver is the sensible middle — and SGB beats every other form of buying gold.
Gold and silver — live
International spot prices in USD per troy ounce, plus the USD/INR rate. For Indian-INR exposure, see the gold & silver ETF table below — it tracks live NAVs of every major Indian metal ETF.
International spot prices via OANDA in USD per troy ounce (1 oz = 31.1035 g). For an Indian-INR conversion: per-gram INR ≈ (XAU price × USD/INR) ÷ 31.1035. Indian retail prices (24K, 22K) include making charges and local premium over international spot. Past performance does not guarantee future returns. Not a recommendation.
ETF NAVs & returns
Live NAVs of every major Indian gold & silver ETF, priced in INR. From AMFI's daily feed; returns annualised from MFAPI historical data. NAV as of 29-06-2015. Click any column to sort.
| Asset Management Company that issues the ETF. | Net Asset Value per ETF unit, published daily by AMFI. | Simple percent change over the trailing 6 months. | Annualised return over the trailing 1 year. | Annualised return over the trailing 3 years. | Annualised return over the trailing 5 years. Silver ETFs only launched in 2022, so most show no 5Y. | 30d Sparkline of the last 30 NAV points, oldest left, newest right. | As of | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Gold ETF | HDFC | Gold ETF | 4460.04 | +192.1% | +192.3% | +47.3% | +31.0% | 02-May-2025 | ||
| Gold BeES | Nippon India | Gold ETF | 1247.35 | +3.3% | +11.8% | — | — | 29-06-2015 | ||
| Silver BeES | Nippon India | Silver ETF | 9.91 | -8.2% | -1.4% | — | — | 01-Jun-2026 | ||
| Silver ETF | HDFC | Silver ETF | 9.72 | -6.2% | -1.8% | — | — | 01-Jun-2026 | ||
| Gold ETF | Kotak | Gold ETF | 57.03 | -0.7% | -3.1% | +21.4% | +19.8% | 01-Jun-2026 | ||
| Gold ETF | SBI | Gold ETF | 44.36 | -7.0% | -9.2% | +16.0% | +14.4% | 01-Jun-2026 | ||
| Gold ETF | ICICI Prudential | Gold ETF | — | — | — | — | — | — | — | |
| Gold ETF | Aditya Birla SL | Gold ETF | 106.65 | — | — | — | — | — | 01-Jun-2026 | |
| Silver ETF | ICICI Prudential | Silver ETF | 9.84 | — | — | — | — | — | 01-Jun-2026 | |
| Silver ETF | Aditya Birla SL | Silver ETF | 30.35 | — | — | — | — | — | 01-Jun-2026 |
Indian gold ETFs typically charge 0.3–0.7% expense ratio and track 24K gold prices. Silver ETFs launched in 2022 — fewer products, shorter histories. Both trade on NSE/BSE during market hours; the NAV here is the daily-published value. Not a recommendation. Past performance does not guarantee future returns.
In plain language
Gold has been an Indian household savings instrument for centuries — first as jewellery, more recently as coins, ETFs, and Sovereign Gold Bonds (SGBs). Its job in a modern portfolio isn't to make you rich; it's to provide ballast during equity crashes, currency depreciation, and high-inflation episodes. Silver plays a similar role but with sharper swings — it's both a precious metal and an industrial commodity, so it benefits from both store-of-value flows and solar / EV demand.
There are five practical ways to own gold in India: (1) Physical (jewellery, coins, bars) — most expensive due to making charges and storage; (2) Digital gold (PhonePe, MMTC) — convenient but storage charges and counter-party risk; (3) Gold ETFs (HDFC Gold ETF, Nippon India Gold BeES) — liquid, low cost, but no interest; (4) Gold mutual funds — fund-of-fund layer over ETFs, slightly higher cost; (5) Sovereign Gold Bonds (SGBs) — government-issued, 2.5% annual interest plus gold price appreciation, LTCG-exempt if held to maturity.
For silver, the cleanest options are Silver ETFs (ICICI Pru Silver ETF, Nippon India Silver BeES) introduced in 2022 — liquid, low cost, no making charges. Silver Funds (FoFs over silver ETFs) are slightly more expensive but easier for SIPs. There is currently no Sovereign Silver Bond, so physical silver remains a parallel option with the same making-charge drawbacks as physical gold.
For long-term portfolio allocation, SGB is mathematically superior to every other form of gold ownership: zero making charges, 2.5% interest on top of gold price, no storage risk, tax-free at maturity. The downside: 8-year lock-in (with early exit windows from year 5), and primary issuance has been paused at times. Gold ETFs are the next best — liquid, low-cost, no lock-in.
Visualised
Gold prices are approximate annual snapshots. SGB interest of 2.5% p.a. shown cumulatively from the first SGB tranche (Nov 2015). SGB returns held to maturity are LTCG-exempt; gold ETF gains are taxed at 12.5% LTCG.
Returns shown are historical and do not guarantee future performance.
Quick reference
Pros and cons
Pros
- Negatively or weakly correlated with equity in crashes — true diversifier
- Hedge against rupee depreciation (gold is dollar-denominated globally)
- SGB pays 2.5% interest while you wait for appreciation
- Inflation hedge over very long periods
- Liquid via ETFs and SGB secondary market
Cons
- Long-term returns lag equity meaningfully (~8% gold vs 12–14% equity)
- No cash flow (other than SGB's 2.5% interest)
- Physical gold has storage cost, security risk, and 8–25% making charges
- Can underperform for 5–10 year stretches
- SGB primary issuance has been paused at times — making market entry harder
Who should consider this?
Every multi-asset portfolio benefits from 5–10% gold as ballast. Heavier allocations (15–20%) make sense for retirees prioritising stability over growth, or in periods of currency uncertainty. For wealth-building investors under 40, keep gold below 10% — the opportunity cost vs equity is real.
Common mistakes
- Buying physical gold jewellery 'as investment'. The 15–25% making charges mean you start ~20% in the hole on day one — the price needs to rise 25% just to break even.
- Treating gold as a primary growth asset. Over 30-year periods, equity has trounced gold by 4–6% CAGR — that's a 5–8x difference in terminal wealth.
- Skipping SGB because '8 years is too long'. If you'd allocate to gold anyway, SGB beats every alternative — even with the lock-in, you have liquidity from year 5 via early redemption windows and from day one via the secondary market.
- Confusing 'digital gold' (PhonePe, Paytm) with Gold ETF. Digital gold has counter-party risk with the vault operator and is not exchange-traded.
- Forgetting that SGB interest (2.5%) is taxable at your slab rate, even though capital appreciation at maturity is tax-free.
Auris + this product
We help you decide the right gold allocation for your age and risk profile, choose between SGB and Gold ETFs based on your liquidity needs, and stagger SGB purchases across multiple tranches for vintage diversification. WealthWise tracks your gold across all forms (physical, ETF, SGB) at live market prices.
Frequently asked
Is SGB really better than Gold ETF?⌄
Yes, for long-term allocation. SGB gives you 2.5% interest annually + gold price appreciation + tax-free LTCG at maturity. Gold ETF gives just gold price appreciation, minus 0.3–0.7% expense ratio, with LTCG taxed at 12.5%. Over 8 years, SGB outperforms an equivalent Gold ETF investment by ~25% pre-tax.
What if I need money before SGB matures?⌄
SGB has two exit routes: (1) Early redemption windows on coupon payment dates from year 5 onwards (you redeem to the government at the prevailing gold price); (2) Sell anytime on NSE/BSE in the secondary market (where SGBs trade, though sometimes at a slight discount). Either way, you have liquidity well before maturity.
Should I buy gold jewellery for investment?⌄
No. Jewellery making charges (typically 8–25%) and the loss on resale (jewellers buy back at scrap rates minus 5–10%) make jewellery one of the worst ways to own gold for investment. Buy jewellery because you want jewellery; for investment, use SGB or ETF.
How much gold should my portfolio have?⌄
5–10% is the sensible default for most investors. Higher (15%) if you're closer to retirement or worried about currency depreciation. Lower (3–5%) if you're young, aggressive, and have a 30-year horizon. Almost never higher than 20% — the opportunity cost vs equity becomes significant over long periods.
Digital gold (PhonePe, Paytm) — is it safe?⌄
Digital gold platforms hold physical gold in vaults on your behalf via the MMTC-PAMP partnership. It's not exchange-traded — there's vault operator counter-party risk. Practical for very small amounts (₹100/month accumulation); for serious allocation, SGB or Gold ETF is structurally safer and cheaper.
How do I time my gold purchases?⌄
Don't try. Gold price moves are notoriously hard to time. Stagger purchases over multiple tranches (especially SGBs, which are issued in series 3–6 times a year). For ETFs, monthly SIPs work the same way they do for equity. The goal of gold is ballast, not alpha — timing isn't where the value comes from.
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