Gold-Silver Price Update: The price of gold in the domestic market has reached a high of around Rs 80,000 per 10 grams, while silver has crossed the level of Rs 1,00,000 per kg.
Gold-Silver Price Update: This calendar year has seen a great rise in gold and silver.
Rising gold prices: A large number of people buy gold or silver on Dhanteras, as doing so is considered auspicious. But the question is that now when their prices are at their all-time high, will the buyers buy with the same enthusiasm. In fact, the rapidly rising prices of gold have affected the sale of jewellery ahead of Dhanteras. Due to this, retailers are likely to have lower sales despite the recent reduction in custom duty. In the domestic market, the price of gold has reached a high of about Rs 80,000 per 10 grams, while silver has crossed the level of Rs 1,00,000 per kg.
Great rise in gold and silver
Even though the fast pace of the stock market has been slowed down, this calendar year has seen a great rise in gold and silver. Their prices are constantly going high. In the last 12 months, gold has given a return of more than 28 percent, while silver has given a return of more than 33 percent. Industry experts estimate that due to these increased prices, the sales volume will fall by 10-12 percent compared to last year's Dhanteras.
According to a Business Standard report, Suvankar Sen, Managing Director and CEO of Senco Gold and Diamonds, says, "Global uncertainties have led to a very sharp rise in gold prices in a short period of time."
Around 40 lakh weddings to take place after Dhanteras
Recent geopolitical tensions, especially the conflict in Israel and the Middle East, have strengthened gold's position as a safe investment, leading to a surge in its prices. Despite these challenges, some jewelers seem optimistic about this festive season. And the reason behind their optimism is the nearly 40 lakh weddings to take place after Dhanteras.
Custom duty reduced from 15 percent to 6 percent
Saiyam Mehra, Chairman of the All India Gem and Jewellery Domestic Council (GJC), expects sales on Dhanteras to remain around last year's level. The recent reduction in custom duty from 15 per cent to 6 per cent initially boosted business, but the current high prices have led to a 10 per cent drop in sales compared to last year.
So should you invest in gold and silver?
Colin Shah, MD, Kama Jewelry, told Business Standard, "Dhanteras is the time when demand for gold and silver is usually high. If someone has a long-term investment plan, gold will still be a good option. Gold prices are rising due to several reasons, and geopolitical tensions are the biggest reason for this rally in gold. Going forward, a low interest rate regime is likely to support gold prices." He added, "Conversely, if someone is looking for an easy option, silver can be a good choice for them. ”
Shikhar Aggarwal, Chairman of BLS E-Services, said, “The digital gold platform has made it easy to buy, store and gift gold in a secure manner. Apart from this, gold whether in physical form or digital gold makes it a better asset, which is a great option for gifting or investment during occasions like Dhanteras. ”
According to Sachin Jain, Regional CEO of World Gold Council India, rural areas can give some relief to jewelers. He said, "This year, rural income is expected to increase due to good monsoon and more crop sowing, which may increase gold purchases. The council expects that the demand for gold will remain till the end of the year due to Diwali and wedding season."
