Gold Bonds vs Gold ETFs : Which Investment Wins For Indians In 2025?
With 24,000 tons of gold, Indian women collectively hold an astounding 11% of the global gold reserves1. Hence, the omnipresence of gold in various aspects of Indian life, from celebrations to investments, is no surprise. However, choosing gold might not be that simple, as a range of questions from purity to form position themselves.
The purity of gold, that is, the concentration of gold in a product, is measured by carat. Given that gold is highly malleable (soft), it is often mixed with other materials like copper or silver to form an alloy that can maintain its structure. The table below shows the gold purity chart (India).
| Carat | Purity (%) |
| 24K | 99.9 |
| 22K | 91.7 |
| 18K | 75.0 |
| 14K | 58.3 |
| 10K | 41.7 |
Different gold investments have different purity standards. For instance, jewellery rarely has 24K purity.
Therefore, choosing the right gold investment (2025) requires an optimal analysis of 22-carat gold vs 24-carat gold based on certain metrics.
Price, Value, And Market Trends In 2025
Comprehending the difference between 22k and 24k gold is not restricted to their respective purity. Each category of gold has its unique use case and market reception. Therefore, the gold purity comparison is incomplete without considering factors like price, liquidity, resale value, etc.
This blog explores each parameter in detail, beginning with price.
1. 22-Carat Gold VS 24-Carat Gold: Current Price
Gold prices are subject to change due to various factors. The table below shows the 22-carat vs 24-carat gold difference as per 9 July 2025.
For 22K gold price in India
| Gram | Today (INR) | Yesterday (INR) | Change (INR) |
| 1 | 9,078.30 | 9,026.30 | 52.00 |
| 8 | 72,626.40 | 72,210.40 | 416.00 |
| 10 | 90,783.00 | 90,263.00 | 520.00 |
| 100 | 9,07,830.00 | 9,02,630.00 | 5,200.00 |
For 24K gold price in India
| Gram | Today (INR) | Yesterday (INR) | Change (INR) |
| 1 | 9,902.30 | 9,845.30 | 57.00 |
| 8 | 79,218.40 | 78,762.40 | 456.00 |
| 10 | 99,023.00 | 98,453.00 | 570.00 |
| 100 | 9,90,230.00 | 9,84,530.00 | 5,700.00 |
Source: Livemint2
Therefore, while the prices of both 22K and 24K gold have increased in the 10-gram range, the rest have experienced a decline. However, what influences a change in gold prices is still left for examination.
Factors Influencing Gold Prices In 2025
Understanding the parameters that play a key role in influencing gold prices is important for optimal investment decisions. It not only aids in the efficient timing of investment but also helps in choosing the right form of gold investment.
Let us explore the various factors that influence the 22-carat gold vs 24-carat gold price in India.
1. International prices: In March 2025, gold imports rose 192% and reached USD 4.47 billion. Due to the prominence of imports in the gold market, changes in international prices cause a stir in the domestic market3. Therefore, studying the gold price in India also requires a look at global benchmarks.
For instance, at 1.00 PM on 9 July 2025, the global benchmark of gold price was trading at around USD 3290 (-0.32%)4. This benchmark is based on the OTC (Over the Counter) London Market, the Shanghai Gold Exchange and the US futures market. The graph below shows its one-year price movement.
GOLD BENCHMARK
2. Rupee exchange rate: If the price of rupees falls in terms of an exchange currency, then due to prominent gold import trends, the cost of gold in India will also increase.
For instance, say the price of rupees falls against US dollars. Then the gold imports of India from the US will become more expensive, resulting in an increased price of gold.
3. Domestic cost: The price of 22-carat gold vs 24-carat gold in India is not the same in all states or cities of the country. For instance, the table below shows the price of 10 grams of gold in different metro cities on 9 July 2025.
| City | 22K (INR) | 24K (INR) |
| Bangalore | 90,625.00 | 98,865.00 |
| Chennai | 90,631.00 | 98,871.00 |
| Delhi | 90,783.00 | 99,023.00 |
This difference in price stems from different transportation costs, making charges, demand and much more. Therefore, as these factors change, the price of gold also changes.
Gold Investment Alternatives
Gold is considered a safe-haven asset. Therefore, it competes with interest-bearing assets like fixed deposits, debt bonds, etc. If the interest in these assets increases, gold becomes less attractive. A fall in demand in this scenario will cause a fall in prices. The opposite happens when the interest of such securities falls.
Although these factors influence a periodic price change, gold is widely considered a safe-haven investment owing to its liquidity and resale value.
Resale Value And Liquidity
Gold is favoured for flexibility and capital preservation. Subsequently, an analysis of historical price movements might indicate the best price at which gold can be resold. Let's explore some key trends of the gold price in India for July.
| Parameter | 22K | 24K |
| 1 July price (INR) | 89,313.00 | 97,423.00 |
| 8 July (INR) | 90,263.00 | 98,453.00 |
| Highest rate (INR) | 91,233.00 on 4 July | 99,513.00 on 4 July |
| Lowest rate (INR) | 89,313.00 on 1 July | 89,313.00 on 1 July |
| Trend | Rising | Rising |
After finalising the desired market price of a particular date, the investor can choose to resell his gold on that day. The following formula is used to calculate the sale value.
| Gold Value = Weight of Gold x Purity of Gold (%) x Current Market Price |
Therefore, suppose Mr R wants to sell 10 Grams of his 24K gold reserve in 2025. Assuming he had purchased the gold at INR 8000 per gram and is about to sell it at INR 9000 per gram, he can expect the following 24k gold resale value in 2025.
| Parameter | Calculation | Final Value (INR) |
| Purchase (A) | 10 g x 99.99% x INR 8000 | 79,992 |
| Sale (B) | 10 g x 99.99% x INR 9000 | 89,991 |
| Profit (B-A) | INR 89,991 - INR 79,992 | 9,999 |
However, understanding past trends is not enough to profit from gold investment. Choosing the form of gold according to its prospective usage is key.
Durability And Usage: Which Gold Suits Your Needs?
The two most common uses of gold are jewellery and investment. However, the type of gold suitable for each might not be the same. Let’s understand how.
1. Jewellery: 24K gold is rarely used for jewellery because the high malleability adversely impacts durability. The key might be to target lower caratage for more frequent use. For example, Mia, a would-be-bride, might choose a 22K gold jeweller for her wedding day, but Ria can choose a 10k gold ring for regular office use.
2. Best gold for investment in India: Gold in the form of coins, bars, and digital Gold is popular for investment. If an individual looks at gold purchase for investment, the higher the carat, the higher its resale value. Therefore, most of these usually utilise 24K gold. The table below shows a comparison of digital gold with physical gold.
| Parameter | Digital Gold | Physical Gold (bars, coins) |
| Storage concerns | Require safe storage | Stored digitally |
| Investment corpus | High due to full ownership | Can invest with limited funds |
| Conversion | Usually, it cannot be converted into digital gold | Can be converted into physical gold |
In conclusion, an increase in caratage means an increase in malleability, causing a threat to longevity. Moreover, digital gold is often easier to maintain than physical gold.
Conclusion
While gold continues to be a popular investment medium in India, consideration of 22K vs 24K gold for investment is important in choosing the right investment medium. A high carat indicates a high level of purity, resulting in high malleability. Therefore, the best gold to buy in 2025 depends on prospective usage. While a lower carat is suitable for jewellery, a higher carat is suitable for investment. However, along with other factors, a change in interest in alternative investments can influence gold prices.
If you're exploring reliable alternatives to gold with predictable returns, platforms like Grip Invest offer access to high-yield corporate bonds and fixed-income assets tailored for modern investors.
FAQs On 22 Carat Gold vs 24 Carat Gold
- Can I invest in 24k gold for long-term returns?
24K gold can indeed be an optimal long-term investment choice. Compared to lesser-carat gold, it is the purest kind of gold, having a higher inherent worth. Therefore, fetching a higher price. Although 24K gold is not as ideal for jewellery due to its softness, it is a fantastic option for coins and bars, which are common long-term investments. - Is 22k gold suitable for resale?
In general, 22k gold might be appropriate for resale, especially when it comes to jewellery. 22k gold (91.7% pure) provides a beneficial blend of purity and durability, making it suitable for jewellery while still having strong resale potential. This is in contrast to 24k gold, which is recommended for pure investment owing to its higher purity. - Which gold type gives better value in India?
The suitability of gold depends on the prospective usage of gold. For instance, in the case of jewellery, a lower carat is favoured (22K and downwards) because a lower carat means less malleability. However, if gold is used as an investment, a higher carat means a higher prospective resale value. Moreover, the choice of digital or physical gold should be rooted in security, investment corpus and other considerations.
References:
- The Times Of India, accessed from: https://timesofindia.indiatimes.com/life-style/fashion/luxury/cover-story/indian-women-hold-11-of-the-worlds-gold-read-complete-report/articleshow/116435306.cms
- Livemint, accessed from: https://www.livemint.com/gold-prices
- The Hindu, accessed from: https://www.thehindu.com/business/markets/gold-imports-rise-192-to-447-billion-in-march/article69463980.ece
- Trading Economics, accessed from: https://tradingeconomics.com/commodity/gold
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