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  • Category: Miscellaneous

    Will the gold prices come down?

    Since the interest rates are climbing up and the inflation concerns are back to square one, we are left with a big issue on hand that concerns many middle class families: the purchase of gold.

    Some people with a limited knowledge swear that the gold prices may come down a little now, since the demand may be less. Others opine that the global situation is not too promising and hence the craze for gold as an investment is likely to spur demand and will keep the prices at the same level or help in increasing it even further.

    Members who know the reality based on their background may please give their opinion, Is it fine to invest in gold now?
  • #644039
    I don't anticipate any price reduction these days. Nobody is stopping purchasing gold. If you visit a big gold showroom in Hyderabad you will understand the real situation. Recently I had been to a gold shop in Punjagutta. Hyderabad. A very big showroom. Three floors are there and all are for gold items. The crowd was very high. I never saw such a crowd in any normal marketplaces also. Then I thought really Indians are rich. The transactions were so high in gold purchase these days. The gold prices are static internationally almost. One day a little increase and the other day a little decrease. That is how the market is vibrating. There are no chances of a decrease in the cost of gold.
    Another factor is these days many of the people are not interested in keeping their money in the banks as they are losing confidence in the banking system. So many of the people are converting their cash into gold. So gold purchases will not come down.

    always confident

  • #644050
    Earlier, gold prices used to increase with time steadily but lately they are behaving strangely as for quite some time they are stagnant.

    There are many global factors also which are contributing to the gold price trend in the market.

    Traditionally, in our country, there is a good demand of gold jewellery and that is one reason that gold prices do not nosedive here even in extreme adverse conditions for gold as a commodity.

    It is difficult to speculate about the future gold prices as there are multiple factors, domestic as well as global, for it.

    Knowledge is power.

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