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Top Gold Stocks: List of Best Gold Investment Shares in India 2024

Top Gold Stocks: List of Best Gold Investment Shares in India 2024
Reading Time: 20 minutes

Gold has been an integral part of the Indian economy and a foundation of savings in many Indian households. Therefore, by describing the resilience of the gold commodity, the World Gold Council (WGC) states that the investment demand for gold stocks has been increasing since 2001 by 15% on an annual basis. 

Thus, the gold industry has itself become an inflexion point between the rising prices of gold shares and the changing industry trends. So the question is whether you should invest in the gold stock price in India. 

Well, the simple answer to this question is an English proverb, ‘When we have gold, we are in fear; when we have none, we are in danger.’ 

While buying physical gold has been a traditional way of gold investing, gold related stocks in India have emerged as a popular alternative in recent times. In this blog, we will explore why investing in gold share prices in India is a good idea and what gold investing in India can offer you.

What are Gold Stocks?

Gold in its purest form is a bright, slightly reddish yellow, dense, soft malleable and ductile metal. Humans have valued gold for its lustrous colour and its resistance to tarnishing. Because of its occurrence in nature in minute amounts, gold is an expensive metal. Apart from being considered a symbol of immortality in mythology, today gold is lent and borrowed in the same way as money. Thus, apart from having a form of physical gold, many have turned to invest in gold-related companies in the stock market. Gold shares in India are stocks of companies that are engaged in the exploration, mining, and refining of gold. These companies are typically involved in various stages of the gold mining process, including the exploration of potential mining sites, the extraction of gold from the ground, and the processing and refining of the metal for sale.

You can buy shares of these companies on stock exchanges and benefit from the profits generated by the gold mining stock industry. Additionally, the value of gold stocks is directly linked to the gold share price NSE India and can fluctuate based on supply and demand, mining costs, and global economic conditions. Therefore, investment in gold stocks in India can be a way to gain exposure to the gold stock market without owning physical gold and can offer you diversification and potential for long-term growth.

The Indian Gold Market is in its Golden Age

Considered the material safe haven for people all around the world, Gold was discovered by an Egyptian alchemist named Zosimos. 

While every middle class household might still indulge in debates on ‘Gold vs stock market’, that’s not the case with most investors. In recent years, the Indian gold stock market has witnessed significant growth, driven by rising demand from both individual investors and institutional investors. The market has also been influenced by the government’s policies, such as the gold import restrictions and the introduction of the Gold Monetization Scheme. In addition, the demand for gold in India is heavily influenced by cultural and religious factors, such as festivals and weddings.

The future projections of gold stocks India remain positive. The country’s growing middle class and increasing disposable income are expected to drive demand for gold, particularly for investment purposes. The Indian government’s policies are also expected to have a positive impact on the gold rate in share market. The introduction of the Gold Monetization Scheme aims to mobilize the country’s idle gold and reduce gold imports, which could lead to increased supply and lower prices.

Furthermore, the growing trend of digital gold is also expected to boost the gold stock market in India. Digital gold allows you to buy and sell gold in small denominations and has recently gained popularity. If you are now wondering, ‘which gold company is best in India?’ then look no further, we’ve brought you a curated list of gold investment companies.

List of Best Gold Share Prices in India

India’s gold stock market has been a significant player in the global gold industry, and as such, the popular gold stock prices in India are closely watched by investors and traders worldwide. Let’s take a look at some of the gold stock prices of popular companies.

Gold Company NameSub-SectorMarket Cap (in Cr)Share Price
Titan Company LtdPrecious Metals & Jewellery₹3,29,590₹3,702.35
Muthoot Finance LtdConsumer Finance₹65,446₹1,653.3
Rajesh Exports LtdTextiles, Apparel & Luxury Goods₹8,671₹304.7
Kalyan Jewellers India LtdTextiles, Apparel & Luxury Goods₹44,173₹429.7
Manappuram Finance LtdConsumer Finance₹16,425₹195.45
Vaibhav Global LtdTextiles, Apparel & Luxury Goods₹6,442₹396.95
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data is from 4th April, 2024.  However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!

with a potential for high returns
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with a potential for high returns

Why Invest in Gold Stocks?

Investing in gold mining stocks in India has traditionally been driven by its role as a hedge against inflation. Gold’s unique property as an inflation hedge becomes more apparent in the long term. When inflation rates increase, the value of a currency tends to decline. Historically, major currencies have consistently depreciated in comparison to gold over extended periods.

In recent years, gold stock prices have displayed remarkable growth, doubling in value over the last five years and quadrupling in a decade. In a country like India, where many savings instruments struggle to provide substantial returns, gold becomes an attractive option when the inflation rate surpasses prevailing interest rates.

Furthermore, when we examine the annualized return of gold stocks to buy over a decade, it consistently outpaces inflation. In practical terms, this signifies that gold stocks offer individuals a genuine rate of return, preserving and potentially increasing their purchasing power in the face of inflation.

Top Gold Companies in India: A Brief Overview

Let’s review the best gold stocks to invest in India from our curated gold stocks list:

Titan Company Ltd

An Indian multinational company that sells watches, jewellery, eyewear, and accessories. It was incorporated on July 26, 1984, and is headquartered in Bengaluru, India. Xerxes Desai is the founder and is a subsidiary of the Tata Group. The Indian stock exchange also lists Titan Company Ltd, which is one of the best gold company in India. 

Muthoot Finance Ltd

Muthoot Finance Limited, a leading non-banking financial company (NBFC), specializes in providing gold loan products. As the largest gold financing firm, it offers secured personal and business loans against gold jewellery. The company serves individuals without access to formal credit systems. 

Rajesh Exports Ltd

Rajesh Exports Limited, an India-based gold refiner and manufacturer, exports its products globally and operates wholesale and retail sales, including its own retail showrooms branded as SHUBH Jewelers. With a refining capacity exceeding 2400 tons annually, the company has manufacturing facilities in India and abroad, including Bangalore, Cochin, and Dubai. These facilities produce various types of jewelry, including handmade, cast, machine-made, stamped, studded, tube, and electro-formed. 

Kalyan Jewellers India Ltd

Kalyan Jewellers, a longstanding family-owned enterprise in India, expanded into the jewelry retail sector in 1993. Headquartered in Thrissur, Kerala, it specializes in a diverse range of traditional and modern jewelry crafted from gold, diamonds, and precious stones. Their inaugural showroom under the Kalyan Jewellers brand debuted in Thrissur in 1993. It is one of the top jewellery stocks in India on our list. 

Manappuram Finance Ltd

Manappuram General Finance & Leasing Ltd, Manappuram Finance Ltd is a non-banking finance company that provides various financial services including gold loans, vehicle finance, insurance, foreign exchange services, and distribution of mutual funds. Its operations are divided into three segments: asset finance, gold loans, and fee-based activities. With a nationwide network of over 5,000 branches, it serves more than 58 lakh customers. The company manages assets worth over ₹37,086 crore and employs over 45,000 individuals. 

Vaibhav Global Ltd

Vaibhav Global Limited, a multinational fashion retail giant, has evolved into a leading omnichannel fashion digital retailer over its nearly forty-year history. Specializing in fashion jewelry and lifestyle accessories, the company has effectively utilized diverse channels to provide customers with an immersive shopping journey and establish a formidable brand presence. Its products are available through proprietary TV home-shopping channels operating 24×7, alongside various digital platforms. It is one of the best jewellery stocks in India on our list.

How to Invest in Gold Stocks in India via smallcase?

To buy gold stocks or invest in them in India can be done using smallcase, an investment platform that allows you to buy and sell themed portfolios of stocks, including gold-related stocks. Here are the steps to invest in smallcase so that you can reap the benefits of gold stocks in India:

  • Opening a Demat Account: The first step is to open a demat account online with a registered stockbroker. Therefore, to hold the shares purchased through smallcase, you need a Demat account. You can open a Demat account online by providing your details and submitting the necessary documents.
  • Choosing a Broker: Next, you need to choose a registered stockbroker who offers smallcase portfolios that includes gold stocks. Some popular stockbrokers in India include Zerodha, HDFC Securities, and ICICI Direct. Thus, you can compare the brokerage fees and services offered by different brokers. In order to choose the one that suits their needs.
  • Placing an Order: Once you open the demat account and choose a broker, you can log in to the smallcase platform and select a gold-related smallcase portfolio like Equity and Gold. The portfolio will include gold stocks, and the weightage of these stocks will be based on the portfolio strategy.

At last, you can choose the amount that you want to invest and place an order. The broker will execute the order and credit the shares to your Demat account.

Other Ways to Invest in Gold Stocks

There are multiple ways through which you can easily do gold investing in India. Hence, we have listed some of the best ways to invest in gold for you-

  • Gold ETFs: Exchange-traded funds (ETFs) that track the price of gold are a popular way to invest in gold share names. Gold ETFs invest in physical gold or gold futures and offer you the ability to buy and sell shares like any other stock. 
  • Gold Mutual Funds: Gold mutual funds are another way to invest in gold stock in India. The funds invest in gold mining companies in India involved in mining and the production of gold mining stocks. Their performance is affected by factors such as market conditions and company-specific risks, although it is generally tied to the price of gold. So, find the best gold mutual fund to invest in, today!
  • Gold Mining Stocks Companies: Investing in individual mining gold company stocks is another option for gaining exposure to gold stock India. These top gold companies in India are involved in the exploration, development, and production of gold, and their performance is tied to the price of gold as well as their own operational and financial performance.

However, if you’re confused about which stocks to pick, you can explore smallcases:

  1. smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
  2. They’re created and managed by SEBI-registered experts
  3. smallcase.com offers over 200+ stock portfolios, created by 180+ managers
  4. Some of the popular smallcases among new investors are as follows:

Equity & Gold smallcase by Windmill Capital

Top 100 Stocks smallcase by Windmill Capital

All Weather Investing smallcase by Windmill Capital

Disclosures for aforementioned smallcases

Equity & Gold smallcase by Windmill Capital

Why Invest in Gold Stocks?

Investing in gold mining stocks in India  has traditionally been driven by its role as a hedge against inflation. Gold’s unique property as an inflation hedge becomes more apparent in the long term. When inflation rates increase, the value of a currency tends to decline. Historically, major currencies have consistently depreciated in comparison to gold over extended periods.

In recent years, gold stock NSE prices have displayed remarkable growth, doubling in value over the last five years and quadrupling in a decade. In a country like India, where many savings instruments struggle to provide substantial returns, gold becomes an attractive option when the inflation rate surpasses prevailing interest rates.

Furthermore, when we examine the annualized return of gold stocks to buy over a decade, it consistently outpaces inflation. In practical terms, this signifies that gold stocks offer individuals a genuine rate of return, preserving and potentially increasing their purchasing power in the face of inflation.

Performance Parameters to Consider Before Investing in Gold Stocks

Before investing in gold stocks, there are several factors that you should consider before making informed decisions. Here are some key factors to consider:

  • Risk vs. Reward: You should carefully evaluate the risk and potential rewards associated with investing in gold stocks. Thus, various factors such as geopolitical events, changes in gold stock price India, and gold mining company-specific risks can affect the performance of gold stocks, which can be volatile.
  • Past Performance: You should analyze the past performance of gold stocks before investing. This can help you identify patterns and trends in the performance of individual stocks, ETFs, or best gold mutual funds in India. However, past performance is not a guarantee of future results. So you may use it as a reference point rather than a definitive guide.
  • Management Quality: You should evaluate the management quality of the companies you are investing in. This can include factors such as the experience and track record of the management team, strategy, and financial position. Investors generally consider companies with strong management teams. Furthermore, solid financial positions as more attractive gold investment in share market opportunities.
  • Fees and Expenses: You should consider the fees and expenses associated with investing in Indian gold company shares. ETFs and mutual funds typically charge management fees, which can eat into investment returns over time. Therefore, you should compare the fees and expenses of different investment options. Then choose those that offer competitive fees and a good value proposition.

How to Choose the Best Gold Stocks for Investments?

When choosing the best gold stocks in India, it’s crucial to conduct thorough research on gold mining companies listed on Indian stock exchanges. Evaluate their financial performance, production potential, and regulatory environment. Stay updated on market trends affecting gold prices and consider diversifying your investment across multiple gold stocks to manage risk effectively.

Tips for Gold Share Investing

Gold share investing can be an effective way to diversify an investment portfolio and potentially benefit from rising gold prices. To increase your chances of success, you should approach gold share investing with a strategy. Here are some tips for successful gold portfolio investing:

  • Stay Informed: Staying informed about gold share prices and gold mining stocks in India is crucial for successful gold share investing. This includes monitoring gold prices, keeping up with industry news, and staying informed about individual gold mining stocks India. You can use this information to make informed investment decisions and adjust your portfolios as needed.
  • Don’t Put too Much Risk: It’s important to invest within one’s means and not put too much at risk. Gold share investing can be volatile, and the price of gold can fluctuate rapidly. You should set realistic investment goals and invest only what you can afford to lose without affecting your financial well-being.
  • Diversify Your Portfolio: Diversification is key to successful investing, and gold share investing is no exception. You should consider diversifying the chosen portfolio by investing in multiple gold mining stocks or gold-related funds. This can help reduce the risk associated with individual stock performance and provide a more balanced portfolio.

As always, investors must do their own research and/or consult their financial advisor before investing.

Features of Gold Stocks in India

Gold stocks offer investors several distinctive features that set them apart from other types of investments. Here are some key characteristics:

  • Hedge Against Inflation: Gold stocks tend to perform well during times of inflation, serving as a hedge to protect investors’ portfolios against the erosion of purchasing power.
  • Safe Haven Asset: Gold stocks are often considered a safe haven asset, providing stability and security during times of economic uncertainty or market volatility.
  • Diversification: Investing in gold stocks can help diversify a portfolio, reducing overall risk by spreading investments across different asset classes.
  • Liquidity: Gold stocks are highly liquid assets, allowing investors to buy and sell them easily on the stock market.
  • Exposure to Gold Prices: Investing in gold stocks provides exposure to the price movements of gold itself, allowing investors to benefit from potential increases in the price of the precious metal.

Overall, gold stocks offer investors a unique opportunity to diversify their portfolios and potentially benefit from the stability and growth of the gold market.

Risks Associated With Investments in Gold Stocks

When considering investment opportunities in gold stocks, it’s crucial to be aware of the potential risks involved. Here are some key factors to consider:

  • Market Volatility: Gold prices can be highly volatile, influenced by various economic factors such as inflation rates, currency fluctuations, and geopolitical tensions. This volatility can lead to significant fluctuations in the value of gold stocks.
  • Economic Conditions: The performance of gold stocks is closely tied to overall economic conditions. During periods of economic uncertainty or recession, investors may flock to gold as a safe-haven asset, driving up prices. Conversely, during periods of economic growth, the demand for gold may decline, leading to lower prices.
  • Company-Specific Risks: Individual gold mining companies may face their own set of risks, including operational challenges, regulatory issues, and geopolitical instability in regions where they operate. These factors can impact the profitability and stability of gold stocks.
  • Currency Risk: Gold prices are denominated in US dollars, so fluctuations in currency exchange rates can affect the value of gold stocks, especially for investors holding assets in other currencies.
  • Opportunity Cost: Investing in gold stocks may involve an opportunity cost, as funds allocated to gold investments could have been invested in other assets with potentially higher returns, such as equities or bonds.

Equity and Gold: An Inverse Relationship

All that glitters is Gold and yes, this is the English proverb even the stock market swears by. 

Well, those who have only invested in equities (ownership interest of shareholders in gold company names in India, will back us up here.

Hence, it’s an oft-stated fact that equity and gold do not go hand in hand. Meaning when the price of one goes up, the other tends to go down. Thus, you may ask why this happens. 

This is because you may often move your money from one asset class to the other as a way of diversifying your portfolio and managing risk. Thus, when the stock market is doing well and equities are rising, naturally, you may feel more confident. Next, you’ll be willing to take on more risk, which can lead to a decrease in demand for gold. 

Conversely, when the stock market is struggling and equities are falling, you may become more risk-averse and seek out safe-haven assets like gold, which can cause the price of gold to rise. Thus, to mitigate risks, you can invest in our Equity & Gold portfolio to avoid the hassle of moving your money here and there. This smallcase invests in Equity & Gold, fixing their weights to 70% and 30% where you have access to large-cap companies.

Advantages of Investing in Gold Stocks 

Here are a few advantages of investing in gold stocks:

  • Hedge against inflation: Gold stocks serve as an effective hedge against inflation, showing resilience during economic downturns and market volatility. It has a track record of long-term asset appreciation, making it a valuable addition to your investment portfolio.
  • Diversification: Diversifying your investment portfolio is easy and convenient with gold related stocks India. 
  • Low Cost: You can commence your gold investment journey with a small initial amount and save regularly for the long term.
  • Liquidity: Gold stocks offer easy liquidity, allowing you to subscribe to and redeem them as needed.
  • Long Term Capital Gains: Some gold funds, like SBI Gold Fund, are classified as non-equity products for tax purposes. This classification enables you to claim long-term capital gains tax benefits after holding the investment for a year.

To Wrap It Up…

Gold has been a valuable asset for centuries, and its popularity as an investment option remains strong to this day. Evaluation of the gold company share price India of different gold mining companies is an important indicator for investors. This is because various factors influence the gold stock market.

Additionally, the gold price stock market is subject to fluctuations. Therefore, it is essential to conduct thorough research and analysis. Before investing in any gold stock ensure that the investment aligns with one’s financial goals and risk tolerance. Thus, gold has historically shown to be a reliable long-term investment option. Additionally, it can be an excellent addition to a diversified portfolio.

Overall, you can invest in several gold stocks under one roof. How? By investing in smallcase.

At smallcase, we provide a wide range of portfolios that certainly reflect a theme, idea, or objective. Our portfolios are designed by SEBI-registered professionals and are simple to use.
So, what are you waiting for? Invest in gold through smallcase today!

FAQs

1. Which gold shares to buy in India?

The 3 best gold stocks in India are:
1. Titan Company Ltd
2. Rajesh Exports Ltd
3. Kalyan Jewellers India Ltd
Note: This list is for educational purposes only, and is not meant to be recommendatory.

2. How can I invest in Gold sector stocks?

Three common methods for investing in Gold Stocks are investing directly in gold mining companies, using gold exchange-traded funds, or opting for gold mutual funds.

3. Is it a good time to invest in Gold stocks?

The limited global supply of gold products ensure its price will rise with growing demand, especially considering its critical role in electronics, a trend unlikely to change soon. However investors must evaluate their investment goals and risk appetite before investing in Gold stocks.

4. What are sovereign gold bonds?

Sovereign Gold Bonds (SGBs) are government securities that serve as alternatives to owning physical gold, denominated in grams of gold.

5. Can Gold stocks be profitable for investors?

Gold is favored by many as an investment because it diversifies a standard portfolio, serving as a hedge against inflation and a safe haven in times of market volatility. Investors must comprehend both the growth potential and challenges posed by Gold Stocks before investing in them.