By The recent surge in gold and silver prices has sent shockwaves through markets, leaving many worried about the implications, particularly during the ongoing wedding season where gold holds significant cultural and economic importance, especially for women in Indian tradition. Potential buyers are hesitant due to rapid price increases, unsure if prices will rise further or decrease.
Gold and Silver Prices Surge Over Past 2 Months: A Look at the Rapid Rise
Gold and silver prices surged in two months, creating pressure on buyers with substantial price increases. Gold, the timeless symbol of prosperity and adornment, has witnessed a staggering increase of Rs. 11,000 per 10 grams within this short timeframe. Silver, too, has not been spared from this upward trajectory, experiencing a surge of over Rs. 13,000 per kg in just two months.
Geopolitical tensions, like the Iran-Israel conflict, are adding uncertainty to global markets, exacerbating the situation. Ajay Kedia foresees ongoing price increases driven by geopolitical tensions and heightened central bank gold acquisitions.
In light of current circumstances, should you purchase gold and silver now, or wait for a price drop? Ajay Kedia suggests not waiting, as geopolitical climate and trends suggest prices won’t significantly drop soon. Gold prices experienced minor fluctuations post-August but remained on a consistent upward trend overall.
The Indian Bullion Jewelers Association (IBJA) reports that as of April 18, 24-carat gold was priced at Rs. 73,800 per 10 grams, marking a notable increase from the Rs. 62,000 per 10 grams recorded on February 23. Similarly, silver prices have surged from Rs. 69,653 per kg in February to Rs. 86,500 per kg in April, reflecting a substantial increase of Rs. 16,847 per kg within the same period.
For individuals considering purchasing gold jewelry, the prevailing circumstances suggest that hesitation may not be warranted. The allure of gold, with its timeless appeal and status as a safe haven asset, remains undiminished despite the current price surge. Moreover, with the wedding season in full swing, the demand for gold jewelry is expected to remain robust, further bolstering prices.
In conclusion, while the recent surge in gold and silver prices may be daunting for potential buyers, the prevailing geopolitical tensions and market dynamics indicate that waiting for prices to decline may not be a prudent strategy. With experts predicting continued upward momentum in prices, those considering purchasing gold and silver jewelry may find it advantageous to seize the opportunity rather than delay their purchases in hopes of a price correction that may not materialize.
