Abhishek Vij
Markets remained as expected on Dhanteras. However, gold and silver markets across the country continued to see a rush for people to purchase these precious metals. Although demand was slightly lower than last year, traders believe this is due to the steadily rising prices of gold and silver this year. According to the Indian Bullion Jewelers Association, gold sold for Rs. 129,584 per ten grams on Dhanteras. Silver also sold for Rs. 169,000 per kilogram. On the previous Dhanteras, gold was priced at Rs. 78,846 per ten grams, a 64 percent increase in one year, and silver was priced at Rs. 97,837 per kilogram.
Silver prices increased by approximately 73 percent. It should be remembered that since ancient times, Indians have had a tendency to purchase and preserve precious metals and jewelry, including gold and silver, for their lasting prosperity. This is despite the fact that India’s mines produce very little of these precious metals, forcing us to import them from abroad. This isn’t just a trend in Indian markets; gold and silver prices are rising worldwide. Silver prices have jumped significantly because it’s used in modern and nuclear production. Furthermore, countries around the world are increasing their treasury reserves to protect their exchange rates from falling. But this time, is it the uncertainty of a recession or the impact of the uncertainty created by unusual weather conditions around the world?
Is it the devastation and transportation disruptions caused by the ongoing conflicts around the world (Russia and Ukraine, Israel and Hamas) that are causing people and governments to purchase gold and silver in large quantities to provide security to their coffers and coffers? What to say about India, gold sales in the international market have also set new records. International gold prices have risen from ₹53,500 to ₹54,000 in just 36 days. Overall, not only in India, but international gold prices have increased by 58 percent annually. This increase was the largest in 45 years. Even during these Diwali months, gold prices saw an 8 percent jump.
Experts say that this year, gold could reach ₹1.50 lakh per ten grams. The wedding season in India runs from October to February-March, so a decline in gold and silver prices is out of the question. However, Indians’ obsession with gold is not encouraging productivity or investment. Generally, gold and silver accumulation is not a fluid investor asset; it settles down wherever it goes. In contrast, stock markets, mutual funds, and other investment avenues failed to show profits this year. They experienced fluctuations.
This is due to the impact of uncertain global events, as well as economic policies. For example, Trump’s tariff war has created an environment of uncertainty and volatility in India’s stock markets. Now that GST has been reduced to two slabs instead of four, and prices are expected to fall, the increased demand during the festive season is also driving a surge in stock market indices. If we want to put the country on the path to prosperity, accelerate growth, and ensure stability, then mobilize our stagnant gold reserves. This must be transformed into a dynamic asset, not a static asset, and only then will India’s prosperity be achieved.