139% Return in Gold Investment in 3 Years; Calculate How Investors Can Benefit from Gold’s Decade-Long Rally

Gold has emerged as a bright spot for Indian investors in recent years, offering strong returns even as the equity markets struggle to regain last year's highs. Data from the Multi Commodity Exchange (MCX) shows that between November 5, 2025, and December 5, 2025, gold prices rose from Rs 1,19,289 per 10 grams to Rs 1,28,221, an increase of nearly 7.5% within just one month.

139% Return in Gold Investment in 3 Years; Calculate How Gold Returns Year by Year in Decade

The yellow metal's performance looks even more impressive over longer periods. Absolute returns over one, two and three years have stood at approximately 70%, 105% and 139%, respectively. For instance, a Rs 1 lakh investment in gold three years ago would now be worth around Rs 2.39 lakh.

Historical MCX data over the past decade highlights gold's resilience as an investment. From December 1, 2015, to December 2, 2025, gold delivered an absolute return of 406.13%, with a compound annual growth rate (CAGR) of 17.61%.

Is It Good Time To Invest in Gold?

Despite the rally, many investors are wary of entering at current elevated levels. Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, suggests that investors focus on long-term fundamentals and accumulate gold gradually during price corrections rather than chasing new highs.

"Risks of inflation, geopolitical tensions, and central bank accumulation all favour gold. A better approach is to buy on dips and hold bullion as part of a diversified portfolio rather than expecting explosive short-term gains," Kamboj told ET.

Navneet Damani, Head of Research for Commodities at Motilal Oswal Financial Services Ltd, echoes this approach, advising staggered buying to reduce timing risk. "Investors can start with smaller positions and increase allocations if prices correct further," he said.

What Gold Prices is Rising? Know Key Drivers

Several factors influence gold prices, including U.S. Federal Reserve policy signals, real interest yields, the strength of the U.S. dollar, central bank purchases, and geopolitical tensions. While rising real yields can weigh on gold in the short term, ongoing demand from central banks and global uncertainties support its safe-haven status.

Physical Gold VS Digital Gold VS Gold ETF VS Gold SGB

Investors can choose from physical gold, digital gold, gold mutual funds, ETFs, or Sovereign Gold Bonds (SGBs). Experts recommend understanding the purpose of the investment before choosing a vehicle. Physical gold suits traditional or ceremonial purposes, while ETFs and SGBs offer cost efficiency, liquidity, and tax advantages for long-term investors.

Gold Investment Strategy: SIP vs Lump Sum

The decision to invest in lump sums or through systematic investment plans (SIPs) depends on individual circumstances. Damani suggests that periodic investing often reduces timing stress and delivers better outcomes. Lump-sum investments are suitable for those confident in market timing and with a long-term horizon. Combining regular SIPs with opportunistic buying during dips can help average costs and build disciplined wealth over time, according to Guha.

Liquidity Considerations

Liquidity is another key factor. Investors who may need quick access to funds should consider gold ETFs or mutual funds, which allow easy buying and selling without locking in money for extended periods.

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