Gold shines bright: Despite price hikes, It’s a boon for investors with Rs.28,000 gains in two years
In recent times, the precious metals market has seen an upward trajectory , with gold and silver prices reaching new heights. The demand for gold is on the rise due to several factors:
1. Increased confidence among individuals, banks, and investors in buying gold.
2. Significant global events that have occurred over the past three years.
3. Gold’s long-standing reputation as a secure investment option.
As a result, gold prices have surged by ₹28,000 over the past two years. Unlike other commodities, the demand for gold tends to increase even when prices go up. Experts believe that gold prices may continue to climb, potentially surpassing ₹75,000.
Similarly, silver prices have also seen a notable increase, rising by ₹7,500 in just the last month to reach ₹1 lakh per kilogram. After a drop to ₹70,640 in February from ₹74,600 in January, silver prices have been steadily increasing. Analysts predict that silver could soon exceed the ₹1 lakh threshold if this upward trend persists.
Here are the primary reasons for the surge in gold prices:
1. Increased gold purchases by central banks of various countries
2. Russia-Ukraine war
3. Recession fears in US and European markets
4. Global economic slowdown
5. Volatility in rising interest rates
6. Decline in US economic situation
7. Increased buying due to unforeseen circumstances
8. War-like situation between Iran and Israel
9. Gold’s reputation as a safe investment haven
10. Traditional importance and cultural significance
11. Preference for gold jewelry
These factors contribute to gold’s allure as a secure and reliable investment, driving up demand and prices.