As the festival of Diwali approaches, there has been a significant surge in the prices of gold and silver. On Saturday, the price of gold increased by ₹500, pushing the price of 10 grams of gold to a record level of ₹80,000. Similarly, silver prices also witnessed a substantial rise, with an increase of ₹3,600, bringing the price of 1 kilogram of silver to ₹98,500.
Increased Demand and Investment Impact
In India, it is common for the demand for gold and silver to rise during the festive season, but this year, the surge in prices can also be attributed to global market uncertainties. According to Pankaj Soni, head of the Jaipur Bullion Association, there has been a growing interest in investing in gold and silver, which is the main reason behind the price hike. With the upcoming Diwali and wedding season, demand is expected to increase even further.
Global Market Instability Driving Price Increases
The uncertainty in the international market has led to a significant rise in demand for precious metals like gold and silver. Investors are viewing these metals as safe investment options, which has caused their prices to continuously rise. Global economic conditions and geopolitical tensions have also contributed to the increase in gold and silver investments.
Prices Expected to Rise Further Before Diwali
Experts believe that this upward trend is unlikely to stop here. By the time Diwali arrives, gold prices could reach ₹82,000 per 10 grams, while silver prices may touch ₹100,000 per kilogram. This projection is based on the anticipated increase in gold and silver purchases during the festive season.
Advice for Investors
Given the rising prices of gold and silver, investors are advised to make their plans soon and keep an eye on the market. While prices are currently high, experts suggest that this investment will remain safe in the long run. After Diwali, there might be some price corrections, but for now, the upward trend seems to continue.
Conclusion
The sharp rise in gold and silver prices ahead of Diwali presents new challenges for investors and buyers alike. If you are considering investing this season, it is essential to act promptly, as there is a strong possibility of increased demand during the festive season. Due to ongoing global market instability and domestic demand, prices could continue to rise.