Introduction: A Century of Wealth in a Gram

In 1925, 10 grams of 24K gold in India cost just ₹18. Fast forward to 2025, and the same gold commands a staggering ₹98,530—a 5000% increase. For generations, Indian investors have trusted gold as a store of value. But is this precious metal still worth its glitter today? And more importantly, will it cross the ₹1,00,000 mark soon?

Let’s dive into the 100-year gold price history in India, decode its growth patterns, compare its returns with other assets, and forecast what 2026 might look like for gold investors.

100 Years of Gold Prices in India (Table)

Source: Compiled from RBI, World Gold Council, and historical financial archives.

Milestones That Shaped Gold Prices in India

1930s–1950s: Colonial & Post-Independence Stability

During British rule, gold prices remained fairly stable. The Indian rupee was tied to the pound, and gold demand was largely cultural rather than financial.

1970s: Global Shocks & Local Awakening

The Bretton Woods system collapsed, detaching the USD from gold. As inflation soared worldwide, gold became a haven. In India, prices jumped from ₹184 (1970) to ₹1,330 (1980).

1991: Economic Liberalization

When India opened its economy, gold imports rose. This was also the year India pledged gold to the IMF during a forex crisis. Price? ₹3,466 per 10g.

2008–2012: Global Financial Crisis

Fear ruled markets. Gold surged as investors dumped stocks and sought safety. In India, prices crossed ₹30,000 by 2012.

2020–2025: Pandemic, Geopolitics & Inflation

A combination of the COVID-19 pandemic, US-China tensions, Fed rate cuts, and weakening rupee pushed prices from ₹47,000 (2020) to a record ₹98,530 in 2025.

Why Did Gold Hit ₹98,530 in 2025?

1. Global Monetary Easing

The US Federal Reserve cut rates aggressively to combat economic slowdown. This weakened the dollar, making gold attractive globally.

2. RBI’s Massive Gold Reserve Push

In early 2025, the Reserve Bank of India added over 200 tonnes of gold to its reserves. (Source: Economic Times). This signaled institutional confidence in gold, pushing domestic prices higher.

3. Record-Breaking Domestic Demand

The 2024–25 wedding season saw a surge in physical gold purchases. Combined with festive buying and investment demand (especially in SGBs), prices shot up.

4. Geopolitical Instability

Conflicts in Eastern Europe and oil-producing nations led to global fear, traditionally bullish for gold.

Gold vs. SENSEX: A 50-Year ROI Comparison

Insight: While the SENSEX outperformed in raw numbers, gold offered more stability during recessions, making it a crucial portfolio diversifier.

Should Investors Still Buy Gold in 2025?

Gold remains a safe-haven asset, especially during inflation, geopolitical unrest, or stock market corrections. It’s also immune to credit risk and currency depreciation—an edge few assets can offer.

If you had bought 100g of gold in 2000 (₹44,000), it would now be worth ₹9.85 lakhs. That’s over 2000% return in 25 years!

Will Gold Cross ₹1,00,000? Expert Forecasts for 2026

According to Ritesh Jain, Ex-CIO at Tata Asset Management:

“Gold will likely outperform the NIFTY 50 in 2025–26 due to rising inflation, political uncertainty, and weakness in global currencies.”

Many analysts believe that ₹1 lakh per 10g is within reach by early 2026, assuming current macro trends continue

Conclusion: What 100 Years of Gold Teach Us

Gold isn’t just a shiny metal—it’s a mirror of economic history, cultural value, and investor sentiment. From ₹18 to nearly ₹1 lakh, gold has proven its strength across wars, pandemics, financial crises, and tech booms.

For 2025 and beyond, gold remains a compelling asset—not necessarily for spectacular returns, but for stability, security, and diversification.

Investor Tip: A portfolio with 5–15% gold allocation is often considered optimal by wealth managers. Consider Sovereign Gold Bonds or ETFs for tax-efficient, digital exposure.