With gold prices soaring in recent months, Indian consumers who share a deep cultural and emotional bond with the metal are finding it harder than ever to make meaningful purchases for weddings or auspicious occasions. Gold has long been both an emotional anchor and a financial safety net for Indian families. But in 2025, this relationship is under serious pressure.
Many households are now buying only token quantities, while others are postponing purchases in the hope that prices will cool. In Chennai, 10 grams of 24-carat gold is now priced at Rs 1,36,530 per 10 grams, while 22-carat gold is trading around Rs 1,25,150 per 10 grams. In Hyderabad, 22-carat gold costs approximately Rs 1,24,100 per 10 grams, while 24-carat gold is priced at Rs 1,35,380 per 10 grams.
This brings us to the big question: Will gold ever return to levels that feel affordable for the common man? To answer that, we must understand what is really pushing prices so high beyond festival demand or local buying trends and whether those forces are likely to ease anytime soon. The sharp rise in gold prices isn’t just a seasonal spike; it reflects a deeper, structural shift in the global gold market.
Across Asia, Africa, and the Middle East, central banks are buying gold at the fastest pace seen in more than 40 years. This huge demand from governments creates a strong base for prices and makes it unlikely for gold to return to the old, lower levels, even if there are temporary corrections.
Global conditions are also adding to this upward push. Rising geopolitical tensions, changing trade relationships, stubborn inflation, and uncertain interest-rate policies are making both big institutions and ordinary investors put more money into safe-haven assets. In times like these, gold naturally becomes the preferred long-term protection. In India, the steady weakening of the rupee is magnifying the problem. Even a small $20–$30 increase in global gold prices leads to a sharp rise in domestic rates. This currency effect adds extra pressure on Indian buyers, making gold feel even more expensive locally.
The affordability gap becomes clearer when we compare past and present price realities. In 2004, a middle-class household could comfortably buy 10 grams of gold for Rs 5,850, often using one month’s savings. In 2025, the same 10 grams cost nearly Rs 1,23,000, now requiring two to three months of savings for a large segment of the population. This widening gap reflects deeper economic stress wages are not growing at the pace at which gold prices are rising.
Recent income data paints an even more realistic picture. In 2025, a lower-middle-class household earns roughly Rs 33,000 per month, with essential expenses consuming around Rs 20,000. In Tier-2 cities, average incomes range between Rs 28,000 and Rs 32,000, while in metro cities they rise to Rs 38,000–Rs 42,000. Even when considering the broader middle-class definition annual incomes between Rs 5 lakh and Rs 30 lakh rising education costs, healthcare bills, EMIs, and inflation have made discretionary purchases like gold increasingly rare.
This economic pressure is reflected in another trend across India, the rapid rise of gold loan shops. In many areas, for every new jewellery showroom that opens, a gold loan branch appears right beside it. This clearly shows that while families still depend on gold during emergencies, they are finding it much harder to buy fresh gold because of the soaring prices. Gold continues to be the first asset people pledge when they need credit, but the ability to replace or rebuild that gold later is becoming increasingly difficult.
Waiting for prices to return to earlier levels is unrealistic in the current global environment. Does this mean, the yellow metal is permanently out of reach of the masses. The answer is a big NO. What is required is a change in the mindset and method of accumulating it. Indian households must shift toward more structured and systematic ways of building gold wealth.
I strongly recommend modern gold accumulation tools such as Gold SIPs, which allow households to start investing with minimal amounts daily SIPs from as little as Rs 20 or monthly contributions starting from Rs 100– Rs 500. This low-entry approach removes financial pressure and encourages disciplined, gradual accumulation over time, making gold investing far more accessible and stress-free.
Sovereign Gold Bonds (SGBs) are another compelling long-term avenue, available in denominations starting from just 1 gram. They offer a powerful combination of benefits: a fixed 2.5% annual interest paid by the government, along with the potential for gold price appreciation over the years. In addition, SGBs come with zero storage costs and tax-free capital gains at maturity, making them one of the most efficient and rewarding ways to invest in gold for the long run.
Gold ETFs, which are SEBI-regulated, offer liquidity, transparency, and ease of trading. These ETFs are backed by physical gold and can be bought and sold on the stock exchange just like shares. Depending on the ETF, one unit may represent as little as 0.01 g of gold, making it affordable for small investors.
A decade ago, India transformed the way people invested in mutual funds through SIPs. Today, gold is going through a similar shift. More and more families now view gold as a financial asset first, choosing to accumulate it gradually and convert it into jewellery only during weddings or important life events. This helps spread out the financial burden and reduces emotional stress.
So, is gold really becoming out of reach for the common household? While prices may stay high, owning gold doesn’t have to feel impossible. With disciplined accumulation and the growing availability of financial-gold products, Indian families can continue to build their gold savings with ease. The days of buying a sovereign for Rs 5,850 may be behind us, but the opportunity to own gold remains very much alive, it simply calls for a more structured, modern, and financially wise approach.
(Ponmudi R is CEO, Enrich Money, a SEBI registered online trading and wealth tech firm. The views are personal)