Are you planning to invest in Gold? Then this article is for you. If you’re making an annual income of Rs 10 lakh, you might be wondering how much of that you should put into gold. Gold has been a go-to investment for many Indians over the years, but figuring out the right amount to invest is key to boosting your financial strategy. We’ve looked into expert insights and the latest research to help answer this question. Let’s dive in.

 

Why is investing in gold important?

Gold is seen as a safe bet and acts as a solid buffer against inflation and economic ups and downs. The World Gold Council reports that over the past decade, the price of gold has jumped from Rs 24,150 per 10 grams in 2015 to Rs 81,803 per 10 grams as of February 2025. This means gold has delivered an average annual return of around 12-15%. So, it’s natural to wonder how much of your income should go into this valuable metal.

 

What do the pros recommend?

Financial advisors suggest that you should aim to have about 10-15% of your investment portfolio in gold. For someone earning Rs 10 lakh a year, that translates to investing between Rs 1 lakh and Rs 1.5 lakh in gold annually. Of course, this also hinges on your risk tolerance, financial objectives, and current savings.

 

A recent report from the India Bullion and Jewelers Association (IBJA) highlighted that gold demand in India for 2024 was 239 tonnes, making up 20% of global demand. Gold prices have hit an all-time high, with 24-carat gold reaching Rs 84,320 per 10 grams. This trend shows that more people are leaning towards gold investments. If you invest Rs 1 lakh each year, you could buy around 11.86 grams of gold at current prices. If gold appreciates by 10% annually over the next decade, your investment could grow to about Rs 2.59 lakh.

 

Investment Options

When it comes to investing in gold, you’ve got a few choices:

 

Physical gold: This includes jewelry, coins, or bars. Just keep in mind that there are costs for making and storing these items.

 

Gold ETF: A budget-friendly and straightforward way to invest in gold digitally.

 

Sovereign Gold Bond: This government scheme offers a 2.5% annual interest rate and comes with tax benefits.

 

What’s the best approach?

If you’re earning Rs 10 lakh and have other savings or investments (like mutual funds or fixed deposits), experts suggest starting with 10%, which is Rs 1 lakh. You can split this between sovereign gold bonds and gold ETFs. This strategy not only provides returns but also helps shield you from market ups and downs.

 

Investing in gold can be a smart choice if you align it with your budget and financial goals. Putting in Rs 1 to 1.5 lakh on an annual income of Rs 10 lakh can really boost your investment portfolio. Just make sure to evaluate your financial situation and get advice from a pro before diving in.