PM Modi Advises Against Buying Physical Gold: Should Investors Consider Gold ETFs Instead?
Should you buy gold ETF as PM Modi urges domestic investors to avoid buying physical gold?
Mint
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Prime Minister Narendra Modi has urged Indian citizens to avoid purchasing physical gold this year due to rising crude oil prices and a strengthening dollar. In contrast, experts recommend investing in Gold Exchange Traded Funds (ETFs) as a more efficient and flexible option for gaining exposure to gold without the complications of physical ownership.
- 01PM Modi advises against buying physical gold to manage economic stability.
- 02Gold prices are under pressure, with MCX futures falling to ₹1,52,000 per 10 grams.
- 03Gold imports surged 24% to $71.98 billion in 2025-26, impacting the trade deficit.
- 04Gold ETFs are recommended for their liquidity and ease of investment.
- 05Experts suggest maintaining a 10% portfolio allocation to gold for diversification.
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On May 11, 2026, Prime Minister Narendra Modi urged Indian citizens to refrain from purchasing physical gold, citing the need to conserve foreign exchange reserves amid rising crude oil prices and global economic uncertainties. As a result, MCX gold futures for June delivery fell ₹532 to ₹1,52,000 per 10 grams. In contrast, gold imports surged 24% to a record $71.98 billion in the fiscal year 2025-26, exacerbating India's trade deficit. Experts advocate for Gold Exchange Traded Funds (ETFs) as a more efficient investment vehicle, offering simplicity and liquidity without the hassles of physical gold ownership. Analysts suggest that maintaining a 10% allocation to gold in investment portfolios can serve as a hedge against global uncertainties. With geopolitical tensions and inflation concerns persisting, gold prices are expected to remain range-bound, with strong support around ₹1,48,000 on MCX.
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PM Modi's advice to avoid physical gold purchases aims to stabilize the economy and manage trade deficits, which could influence consumer behavior and investment strategies in India.
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