Gold prices in India hit a record high of ₹50,015 per 10 grams on the Multi Commodity Exchange of India Ltd (MCX) on 22nd July as investors sought refuge in the yellow metal due to growing global uncertainties surrounding the pandemic and low interest rates offered by central banks around the world. Gold reached a nine-year high of $1,857.75 per ounce in international markets.
Silver prices in India reached ₹59,295 per kg for the first time in eight years.
In India, jewellers have relied on the fact that gold plays an intrinsic role as a store of wealth and remains an easily liquefiable insurance policy during bad times.
Aditya Pethe, Director, WHP Jewellers, says, “The all-time high rates of the yellow metal reimposes the faith of consumers in gold. It is the only asset class which has shown appreciation of about 20% in the last six months. Currently, demand is low due to the pandemic, but once the situation normalises, consumers may switch to lighter products due to the high rates, but demand will definitely increase.”
Vaibhav Saraf, Director, Aisshpra Gems and Jewels, Gorakhpur, Uttar Pradesh, notes, “Gold has always been a safe haven for investors globally. Increasing international border tensions, trade wars, and Covid-19 is fuelling the growth further. Demand will be affected in the short run, but once the price stabilises, buyers reach a level of acceptance and we should see a rise in demand.”