1 kg of gold could buy a Maruti 800 in 1990. Now you can purchase a BMW or an Audi

Published 1 day ago• 3 minute read

Gold hit a record high of Rs 88,672 per 10 grams, enough to buy luxury cars like BMW and Audi. Its three-year rally, driven by central bank purchases and geopolitical tensions, continues in 2024.

<p>As of March 18, 2025, the price of 10 grams of 99.9% pure 24k gold in Delhi, India, is Rs 90,675. Generally considered to be a safe asset, especially in turbulent times, gold has also emerged as a wealth creator of late. According to data, between 2005 and 2025, gold has seen a CAGR (compounded annual growth rate) of 11.2%, as opposed to the 10.3% CAGR seen by Sensex.<br></p> — As of March 18, 2025, the price of 10 grams of 99.9% pure 24k gold in Delhi, India, is Rs 90,675. Generally considered to be a safe asset, especially in turbulent times, gold has also emerged as a wealth creator of late. According to data, between 2005 and 2025, gold has seen a CAGR (compounded annual growth rate) of 11.2%, as opposed to the 10.3% CAGR seen by Sensex.

A kilogram of gold is now enough to buy a BMW or an Audi, compared to a Maruti 800 in 1990. On Monday, gold hit a lifetime high of Rs 88,672 per 10 grams, translating to Rs 88.67 lakh per kilogram.

The starting ex-showroom prices for the BMW X1 and the all-new X3 petrol/diesel models are Rs 50.80 lakh and Rs 97.80 lakh, respectively. With this amount, one can also purchase Audi models such as the A4, S5, A6, and Q3.

SEBI-registered research analyst AK Mandhan highlighted in a tweet on March 16 how gold prices have evolved compared to car prices. In 1990, 1 kg of gold could buy a Maruti 800. By 2000, it was enough for a Maruti Suzuki Esteem. In 2005, it could buy a Toyota Innova, and by 2010, a Toyota Fortuner. By 2019, 1 kg of gold could purchase a BMW X1.

"Keep 1 KG #gold & wait till 2040....you may be able to buy a private Jet," he tweeted.

Gold has been on a fast track for the past three years, delivering one of its best performances in a decade in 2024, with an annual growth of 26%. This surge was driven by central bank purchases, geopolitical tensions, and expectations of accommodative monetary policies by global central banks, including the Reserve Bank of India (RBI).

So far in 2024, gold has gained 15%, translating to nearly Rs 11,735 per 10 grams, according to Anuj Gupta, Head of Commodity & Currency at HDFC Securities.

Gold's increasing strength can be seen in its consistent rise over the years.

Commenting on its prospects, Jateen Trivedi, Vice President and Research Analyst – Commodity and Currency at LKP Securities, said that gold remains in an upward momentum as uncertainty persists amid heightened geopolitical tensions. President Donald Trump has vowed to continue U.S. strikes on Yemen’s Houthis unless their Red Sea attacks cease.

"This instability in the Middle East, coupled with China’s plans for additional economic stimulus, has further fueled safe-haven demand for gold. With these factors in play, the gold price range has shifted higher to Rs 88,000–Rs 89,200," Trivedi said.

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