Gold and silver prices are increasing at a stormy speed. In the last 4 years, Gold has given a return of 152%, the highest compared to any other property. Meanwhile, the biggest question is whether it would be right to invest in these metals right now?
Gold-Silver Pries: Gold and silver have been seeing strong boom for the last few months. Both metals are touching new records in the Indian market. In the last four years, gold has given strong returns to investors. Gold prices in the domestic market have to see growth of more than 152%, which is far ahead of other assets. During this time, silver prices have also seen a great rise. Despite the tremendous returns of both metals, the question that often comes to the minds of investors is whether this is the right time to invest in gold and silver?
Is this right time to invest in gold and silver?
Experts believe that even though the price of gold and silver in the short term, there should be 2 to 5 percent fluctuations, but every decline should be seen as an opportunity. Both precious metals in the long term can give good returns to investors. According to Philip Pneumon of Metals Focus, gold and silver will continue to strengthen and will touch new heights by the end of this year and by 2026.
Also read: Gold Price: How expensive gold became in 9 months? Silver desperate to reach one and a half million
When to buy gold before Diwali?
According to Kirit Bhansali, chairman of the Gem and Jewelery Export Promotion Council (GJEPC), investors should consider buying gold before Diwali instead of waiting for the last minute. Given the current market status and geo-political pressure worldwide, it seems almost impossible to have any major change in prices. Gold prices will continue to rise every month.
Why are gold and silver getting expensive?
1- Geo-Political Tension
Investment in gold and silver is a safe investment. Gold is the safest option for investment, despite the ongoing political tension, market turmoil and economic uncertainty worldwide. At the time of crisis, investors are usually attracted towards gold to protect money, making it a reliable tool of financial security.
2- Federal Reserve Bank’s concern
The Federal Reserve Bank is one of the most effective authorities in the Global Economy. Its decisions are seen to have a big impact all over the world. However, the recent tension between Fed Chairman Geom Powell and US President Donald Trump has raised concerns about Fed’s credibility and independence. This uncertainty has inspired investors to invest in gold and silver as a safe investment to avoid potential inflation and currency risk.
3- Rising industrial demand
In the last few days, there has been a significant increase in gold-silver industrial demand, mainly due to his important role in green technology in solar panels, electronic devices and electric vehicles. Increasing use in renewable energy sectors and lack of supply have also increased the prices of gold and silver.
4- Dollar weakness
One of the reasons for the increase in gold and silver prices is also the decreasing confidence of investors in US dollars. Whenever the dollar is weak, gold and silver prices usually increase. This is because the weak dollar makes these metals more cheaper and attractive for buyers with other currencies.
5- Shopping for central banks
Whenever central banks of all countries around the world increase investment in gold, its demand increases in the longitarm. Due to excess purchases of gold, its supply is also reduced, which leads to a rise in prices. Please tell that currently 24 carat pure army is around Rs 1.17 lakh per 10 grams. At the same time, silver has reached Rs 1,45,610 per kg.
See also: Gold and silver break all records: Buying right now or wait?