It is considered very auspicious to buy gold during the Dhanteras- Diwali festive season in India. Since Diwali last year, Gold prices have risen over 20% from the level of ₹50000/ 10 gm in the Indian market to almost ₹60000 now. Silver has outperformed gold rising around 25% since last Diwali.
Gold may remain volatile in the immediate term, reacting to inflation, economic indicators, and interest rate trajectory discussions. However, I am bullish on gold for the next 6-12 months. I don’t think, prices will sustain below $1860 (Rs 57000/ 10 gm) and it will rebound soon and head higher towards Rs 60000/10 gm in the next 2-3 months and probably a new high in the first half of the year 2024.
India’s culture is closely linked to gold, which is associated with festivals, customs, and religious beliefs. In India, purchasing gold is not a luxury but rather a necessity. In recent years, numerous changes in consumer behaviour and perceptions of precious metals have occurred.
In the last 20 years, the average CAGR return on gold is 12%, so whenever gold prices correct from their recent high, investors jump to buy gold. But there is always confusion among investors about whether to invest in Gold through a lumpsum amount or if they should go for a SIP. In this Knowledge series, the pros and cons of both lumpsum investment and SIP investment have been stated, so that investors can take a proper decision.
SWOT Analysis is a strategic management technique to understand the Strengths and Weaknesses of the market and also to recognize future Opportunities and Threats. To understand the future trajectory of record-high gold prices, let’s look at its SWOT Analysis.
Humans have mined gold for about 7,000 years. Let’s understand the sources of gold supply and how it reaches the customer in the form of jewellery, bars, coins, etc. What is the lifecycle of gold and what is the role of each market participant in the supply chain?
The import duty on silver bars and silver doré has been increased and is now aligned with that of gold and platinum. Moreover, the conversion of physical gold into EGR and vice-versa has been exempted from Capital Gains – this will enable EGRs to become more popular.
After eight months of downward momentum, now finally silver has started its bull run in the last week of November. Silver prices had been trading in the range of Rs $18 (~54000/kg) to $22 (~Rs 63000/kg) for the last six months. This range is finally broken now, so buying on dips is advised, as prices could touch record highs in the year 2023 for the various reasons discussed here.
#Silver #bullrun #demand
This Diwali 2022 has given best opportunity for long-term investors to buy gold on auspicious day and take benefit of lower prices as gold is expected to continue giving historical 11% CAGR returns in future too.
To understand the auspiciousness of Gold and its connection with Dhanteras & Diwali and why is it the best time for gold buying, Click here…..
All the forms of gold investment have various advantages and disadvantages, it purely depends on the investor’s investment horizon and risk-taking ability to choose the form of investment. Differences and similarities are discussed here.