Gold and currency hedges: Why Indian investors are considering gold ETFs and currency risk in 2025

NRIs in the UAE are weighing rupee hedges as currency swings gnaw at India-focused gains. Gold ETFs are central to the debate, with investors weighing bullion upside against stock exposure in 2025 ^[1].

GIFT CITY becomes a flashpoint in the rupee-hedge discussion, as some see cross-border setups and currency routing as a way to smooth returns. Others warn currency moves can still bite, so hedging and liquidity matter more than ever ^[1].

Gold ETF face-off: Nippon GoldBees vs Tata Gold ETF — When asked which gold ETF to pick, many point to Nippon GoldBees for liquidity, while others favor Tata Gold ETF for a lower expense ratio and solid tracking. Expense comparisons show Nippon around 0.80% vs Tata at about 0.50%, influencing choices for long horizons ^[3]. In practice, investors stress that both offer established liquidity and a track record, so the decision often boils down to cost and ease of trading ^[3].

Silver ETFs caution — Indian silver ETFs are trading at a notable premium due to a temporary supply deficit, with the premium suggesting wholesalers and dealers are tight. Fresh purchases are discouraged, and profits may be booked by some, though long-term holders could stay the course ^[2]. A few even flag ICICI Silver ETF among the options to watch as the premium story evolves ^[2].

Gold shines in dollar terms vs Indian equities — A Bloomberg note highlights gold’s surge past $4,000/oz and a high Gold-to-Nifty ratio, underscoring bullion’s outperformance when measured in dollars as IPO gains fade ^[4].

Closing thought: in a choppier 2025, gold ETFs and currency hedges sit alongside stock picks as a safety-forward toolkit for cautious Indian investors.

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