Best Gold Stocks in India 2024

  • 10 May 2024
  • Read 24 mins read

Indians and Gold have significant cultural ties, contributing to Gold's popularity as an investment. India is the world's second-largest consumer of gold. Hence, gold stocks are in great demand as investments. According to the World Gold Council (WGC), since 2001, there has been a 15% annual growth in the demand for gold equities as investments. As a result of shifting business trends and the growing price of gold in India, the gold sector has evolved into a hub. Although the conventional approach to investing in gold is through real gold, gold related stocks India have unexpectedly gained popularity as a substitute. 

What are Gold Stocks?

When gold is pure, it is a remarkable, almost reddish golden metal that is dense, malleable, and robust. People have loved gold for ages because of its brilliant colour and ability to withstand water. Gold is a costly metal since it occurs in minute amounts in nature. Furthermore, its mythological significance as a symbol of immortality, gold is borrowed and lent much like money. Thus, a growing number of people are turning to stock investments in gold-related enterprises in addition to actual gold ownership. The stocks of companies involved in gold mining, exploration, and processing in India are known as gold shares. 

 

List of Best Gold Share Prices in India

As the Indian gold market has been a major participant in the global gold sector, traders and investors keep a careful eye on the popular gold stock prices in India.

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

Disclaimer:  The market capitalisation mentioned above is accurate as of date, 25th April, 2024. However, conducting your research before making any investment decisions in these stocks is important.

Top Gold Companies in India: A Brief Overview

From our carefully selected gold stock list in India, let's explore the top gold stocks you can consider buying in India. 

  • Titan Company Ltd

    Titan Company Ltd is an Indian multinational corporation specialising in selling watches, jewellery, eyewear, and accessories. Established on July 26, 1984, and headquartered in Bengaluru, India with a market capitalisation of ₹3,17,037.30 crore, the company's trailing twelve months price-to-earnings (P/E) ratio stands at 94.42, and its price-to-book (P/B) ratio is 26.82, reflecting its valuation metrics within the market context. The company's price/earnings to growth (PEG) ratio of 2.82 may indicate the growth prospects relative to its current valuation.
  • Muthoot Finance Ltd

    Muthoot Finance Limited is a well-known non-banking financial firm (NBFC) with a focus on gold loan offers. The company uses gold jewellery as assets to offer secured loans for businesses. It has a market capitalisation of ₹66,443.91 crore, a price-to-book (P/B) ratio of 3.07 and a trailing twelve-month price-to-earnings (P/E) ratio of 14.25. The 2.74 debt-to-equity ratio indicates how loaded the firm is with its equity. Furthermore, the 0.842 price/earnings to growth (PEG) ratio may suggest a good price for expected earnings growth.
  • Rajesh Exports Ltd

    Rajesh Exports Limited is an Indian corporation that specialises in the production and refining of gold, with a global export market. The business sells gold items both wholesale and retail. With a market capitalisation of ₹9,429.13 crore, Rajesh Exports Limited is well-represented in the market. Its earnings multiple over the previous year can be seen by the trailing twelve months price-to-earnings (P/E) ratio, which is 14.76. It has a low price-to-book ratio of 0.64. Furthermore, compared to expected revenue growth, the price/earnings to growth (PEG) ratio of 0.10 shows potentially favourable pricing.
  • Kalyan Jewellers India Ltd

    Kalyan Jewellers is a prominent Indian jewellery retail firm with a market capitalisation of ₹43,035.62 crore. The company offers a wide range of traditional and modern jewellery, focusing on gold, diamonds, and precious stones. The trailing twelve-month P/E ratio is 68.85, indicating a high earnings multiple. The price-to-book (P/B) ratio is relatively high at 11.84, and the PEG ratio of 1.19 aligns with expected earnings growth prospects.
  • Manappuram Finance Ltd

    Manappuram General Finance & Leasing Ltd, a subsidiary of Manappuram Finance Ltd, is a significant Indian non-banking finance company offering various financial services like gold loans, vehicle finance, and insurance solutions. With a market capitalisation of ₹16,450.46 crore, the company has relatively low earnings multiple over the past year. The trailing-twelve-month price-to-earnings (P/E) ratio stands at 7.12, reflecting a relatively low earnings price-to-book ratio of 1.71 and a price/earnings-to-growth ratio of 0.37, indicating a potentially attractive valuation relative to expected earnings growth.
  • Vaibhav Global Ltd

    With a focus on fashion jewellery and lifestyle items, Vaibhav Global Limited is a well-known omnichannel digital fashion store that has grown into a huge global industry. With a ₹6,651.30 crore market value, the company is well-known in the apparel retail industry. The price-to-earnings (P/E) ratio for the last twelve months is 50.43, which reflects its earnings multiple for the previous year. The ratio of price to book, or P/B, is 5.51. Furthermore, the 0.60 price/earnings to growth (PEG) ratio suggests potentially appealing pricing about anticipated earnings.

The Indian Gold Market is in its Golden Age

The Egyptian alchemist Zosimos was the one who first recognised gold as a resource for protection. Although middle-class cultures continue to have problems between gold and the stock market, these arguments are rare among investors. In recent years, there has been a noticeable increase in demand for Indian gold stocks from both individual and institutional investors. Government actions such as the establishment of the Gold Monetization Scheme and limits on imports of gold have also influenced the market. Two other religious and cultural events that significantly affect the Indian gold market are festivals and marriages. A lot of optimism about the future of Indian gold stocks.

Rising incomes that can be spent and the nation's growing middle class are expected to drive up demand for gold, particularly for investments. The Indian government's policies are also anticipated to have a beneficial effect on the price of gold on the stock exchange. There is the scheme called gold monetisation which is designed to maximise the country's gold reserves while also lessening the imports. It results in a fall in the price and an increase in supply.  

There is one other benefit that is useful for the Indian stock market. Digital gold is increasing in India and has become popular among individuals over the past few years. People can buy and exchange small amounts of gold digitally.

Why Invest in Gold Stocks?

Investors in India are undeniably attracted to gold mining stocks as a reliable hedge against inflation. As time passes, gold's ability to act as an effective safeguard against inflation becomes more apparent. As inflation rates climb higher, the value of a country's currency tends to decrease. When compared to gold, major currencies have continuously decreased over extended periods throughout history.  When inflation exceeds current interest rates, gold represents an investment of choice in a nation like India, where many investment tools don't provide substantial profits.

Tips for Gold Share Investing

Investing in gold shares in India can boost the diversity of your portfolio and profit from gold's price rise. Having an approach in place can help you enhance your chances of success. Below are some tips for the same. 

  • Remain Advised:

    Profitable gold share investment requires staying current on the latest developments in gold mining stocks and  gold share price India. This means keeping a watchful eye on gold prices, following industry developments, and learning about individual Indian gold mining stocks. You will then be able to make informed investing decisions and make any portfolio modifications.
  • Avoid Putting a Great Deal at Risk:

    It's essential to invest within one's financial capabilities and limit their vulnerability to risk. The price of gold or gold penny stocks India could fluctuate dramatically, and investing in gold shares might be risky. Realistic goal-setting and only making purchases you can afford to lose without hampering your financial health are key to successful investing.
  • Expand your portfolio of companies:

    Investing in gold stocks involves diversity, which is necessary for success. To diversify your portfolio, you might want to consider purchasing various kinds of gold mining stocks or gold-related ETFs. This can lead to a better-balanced portfolio and help lower the risk connected with the performance of particular stocks.

Always remember that before investing, investors should conduct their own research and/or communicate with a financial professional. 

How to Invest in Gold Stocks in India via BlinkX?

Investing in gold stocks in India through BlinkX is a straightforward process. Follow these steps to profit from Indian gold stocks:

Sign Up with BlinkX: First, create an account on the BlinkX platform. Then, provide the necessary details and complete the registration process.

Explore Gold Stock Portfolios: Once registered, browse through the available stock portfolios focusing on gold-related equity investments. Evaluate the portfolios based on your investment goals and risk appetite.

Research and Analysis: Conduct thorough research and analysis on the gold stocks included in the selected portfolios. Consider factors such as the performance of gold prices, company fundamentals, market trends, and economic indicators.

Place Your Investment: After selecting a suitable portfolio, invest in it through BlinkX. Specify the amount you wish to invest and complete the transaction using the platform's secure payment methods.

Monitor Your Investments: Track your gold stock investments regularly. Stay updated on market developments and portfolio performance. Adjust your investment strategy as needed to maximise returns and mitigate risks.

By following these steps, you can effectively invest in gold stocks India via BlinkX and capitalise on opportunities in the gold market.

Other Ways to Invest in Gold Stocks

In India, investing in gold may be carried out via various simple methods. Thereby, we have put together an overview of a couple of the most successful gold investment strategies for you:
 

  • Gold ETFs:

    The most common way of investing in gold stock names involves buying exchange-traded funds (ETFs) that adhere to the price of gold. Gold ETFs allow you to buy and sell shares just like any other stock, and they invest in actual gold or gold futures.
  • Gold mutual funds:

    Another option for buying gold stocks in India is to invest in gold mutual funds. These funds invest in Indian gold mining firms that generate gold mining stocks alongside mining. Although their success is generally mostly associated with the selling value of gold, other factors that influence it include company-specific risks and market circumstances.
  • Gold mining stocks:

    Individual stocks of gold mining companies can also be invested in to gain exposure to Indian gold stocks. These leading Indian companies explore, develop, and produce gold; their effectiveness is correlated with both the price of gold and their own technical and economic performance.

Performance Parameters to Consider Before Investing in Gold Stocks

Before making investment decisions, various factors must be considered, including those listed below. 

  • Potential Hazards Towards Gaining:

    When investing in gold stocks, you should carefully consider the risks and possible returns. Furthermore, several possibilities include geopolitical innovations, fluctuations in the price of gold in India, and gold mining company-specific risks that can affect the performance of gold stocks, which can be volatile.
  • Knowing the Past Performance:

    Understanding the past performance of gold stocks is advisable before investing. You can use this to spot patterns and trends in how certain companies, exchange-traded funds, or the top gold mutual funds in India have performed. That being said, prior performance does not guarantee future success. As such, you can refer to it rather than using it as a final guidance.
  • The Top-Level Performance:

    The management quality of the company in which you are investing should be assessed. This might include things like the strategy, financial status, and management team's experience and performance history. Strong management teams are typically considered by investors. Solid financial standing also makes investments in gold in the share market more appealing.
  • Managing Fees in Gold Company Investments:

    The fees related to investing in shares of Indian gold companies are something you should take into careful consideration. Over time, management fees from mutual funds and exchange-traded funds (ETFs) can reduce investment returns. As a result, you want to evaluate the costs and fees associated with various investing strategies. Following that, identify those that have an amazing value proposition together with competitive fees.

How to Choose the Best Gold Stocks in India for Investments?

While selecting the top gold stocks in India, it's critical to carry out a thorough investigation of gold extraction companies listed on Indian stock exchanges. Investors need to analyse their manufacturing capacity, regulatory environment, and financial performance. To successfully control risk, be updated on market trends and developments that affect gold prices and consider extending your investment among many gold stocks.

Features of Gold Stocks in India

When compared to other stocks, gold companies provide investors with a lot of options to invest in it. Below are some of the features of gold stocks in India.

  • Secure Your Portfolio Against Pricing: Gold stocks are a good protection against inflation since they increase in value whenever inflation rises. 
  • A Trustworthy property: Gold stocks are frequently considered as a form of secure investment because they guarantee security and stability in periods of markets that are unstable or uncertain economic conditions. 
  • Diversifying your portfolio: Diversification involves allocating assets across many asset classes. Gold stock investments may help diversify a portfolio and lower overall risk. 
  • Liquidity: Gold stocks are very liquid assets, so investors can easily buy and trade them on the stock market. 
  • Exposure to Gold Prices: Purchasing gold equities connects investors to changes in the price of gold, allowing them to profit from a possible increase in its value. 

All things considered, investing in gold stocks offers an unusual opportunity to diversify your portfolio and to benefit from the market's stability and development.

Benefits and Risks of Investing in Gold Stocks

The benefits of investing in gold stocks should be balanced against the risks of limited competition and regulatory scrutiny, ensuring high profits and stable returns. Below are some of them. 

Risks of Investing in Gold StocksBenefits of Investing in Gold Stocks
Market Volatility: Gold prices can be highly volatile due to economic factors like inflation, currency fluctuations, and geopolitical tensions.Hedge against Inflation: Gold stocks act as a hedge against inflation, maintaining value during economic downturns.
Economic Conditions: Gold stock performance is linked to overall economic conditions; demand rises during uncertainty and falls during growth periods.Diversification: Investing in gold stocks helps diversify your portfolio, spreading risk across different asset classes.
Company-Specific Risks: Gold mining companies face operational, regulatory, and geopolitical risks, impacting stock profitability and stability.Low Cost: Entry into gold investment is feasible with a small initial amount, ideal for long-term savings.
Currency Risk: Fluctuations in currency exchange rates affect gold stock values, impacting investors holding assets in different currencies.Liquidity: Gold stocks offer easy liquidity, allowing investors to buy and sell as needed with relative ease.
Opportunity Cost: Choosing gold stocks over other assets may result in missed opportunities for potentially higher returns from equities or bonds.Long-Term Capital Gains: Certain gold funds qualify for tax benefits on long-term gains after holding the investment for a year.

Equity and Gold: An Inverse Relationship

Gold is everything that glows. This is an improved version of the original proverb. Nevertheless, knowing the economy's circumstances right now, it is still applicable since it mentions how important it is to diversify your investments appropriately. Most likely, those who had exclusively made stock investments several years prior discovered their oversight the hard way. However, investors who were well-diversified from the beginning and understand other asset classes could offer support when securities disappoint. The most well-known of these asset types is gold.

Equity and gold are not the same, as is frequently said. Therefore, gold tends to decrease and vice versa when equities tend to appreciate. Furthermore, this presents investors with enough potential to profit from either asset class—especially in situations wherein one is losing money. While there has long been an unfavourable link between these two asset categories, it goes above theory. 

For those who are unfamiliar, gold ETFs, sometimes known as paper gold or yellow paper, are undoubtedly the simplest and most affordable means of purchasing a valuable metal. Investors looking to buy gold ETF units must have a demat account. Though mutual fund providers advertise these units, they may be purchased and exchanged on marketplaces (at the moment, just the NSE Nifty), just like any other share or stock. 

As an outcome, a participant in the depository can keep the paper gold properly without worrying about lockers. Additionally, Gold's ETFs are free from the wealth tax compared to the actual gold. Gold has traditionally been an admirable choice for investors. Investors ought to assess Indian gold mining businesses' share prices. 

Conclusion
Numerous variables impact the gold stock market, and changes in the price of gold can impact investing choices. To make fit for the investments, financial objectives, and risk tolerance, there should be a thorough examination from the investors. For every individual, Gold has been a dependable long-term investment option, and its inclusion may have a significant positive impact on a diversified portfolio. The BlinkX online trading app  platform makes it simpler to invest in many gold stocks from a single place with just a few clicks.

FAQs of Indian Gold Stocks

As a hedge against inflation and economic instability, gold stocks are an excellent choice for investors anticipating market volatility, geopolitical worries, or expansionary monetary policies.

While gold stocks may help broaden an investment portfolio, they also come with risks, including those related to price volatility, stock market volatility, operational hazards, regulatory concerns, and macroeconomic variables.

Investors can acquire gold on the Indian stock market through exchange-traded funds (ETFs), mutual funds, and mining companies. This allows investors to gain exposure to gold prices without keeping physical gold.

The best way to buy gold stocks will rely on your own investment goals, preferences, and level of risk tolerance. Among the options are exchange-traded funds (ETFs), mutual funds, and direct investments in mining businesses.

Foreign investment in gold equities is subject to India's capital gain taxes. Depending on the jurisdiction, as well as the length of ownership, different tax rates apply. regulations and taxes You might seek advice from an expert in the stock market.