International Journal of Scientific Research and Engineering Development

Historically, gold investment has been one of the most favored routes for investment in India, owing to its social importance, perceived security, and ability to maintain its value over time. In India, people have been historically invested in physical forms of gold, such as jewelry, coins, and bars, because they are considered secure when there are times of macroeconomic uncertainty in a country. Nevertheless, with the growth of financial markets and subsequent digitization, new forms of gold investment, such as Gold Exchange-Traded Funds (Gold ETFs), have come to attract importance as investors are given a chance to invest in gold without any of the difficulties that come with physical investment.
In this context, the purpose of the current research is to analyze gold investments, explore challenges associated with physical gold investments, and analyze the importance of Gold ETF in the Indian investing community. Based on the secondary research studies, research papers, journals, and other research publications, the current research uses a descriptive research methodology for understanding the transition from traditional gold investing patterns to investing in gold through financial products.
It can be observed from this research that, despite physical gold being a widely favored choice because of various emotional and traditional aspects, there are quite a number of advantages in investing in Gold ETFs, including higher liquidity, better price transparency, and costs that are significantly lower. It can be concluded that greater awareness among investors can help play a crucial part in enhancing the efficiency of gold investment through Gold ETFs, at least in India.

Merrin Conceicao, "Investment in Gold: Trends, Challenges and the Role of Gold ETFs " International Journal of Scientific Research and Engineering Development, V8(6): Page(3038-3049) Nov-Dec 2025. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.