As gold prices crash, safe to invest in yellow metal this festive season?
In mid-September, gold prices were trading at a 2-month low.
The festival season is in full swing and, therefore, it is expected that there will be a surge in demand for gold, primarily due to customs and traditions.
In mid-September, however, gold prices were trading at a 2-month low, according to HT's sister publication Mint. Should you, therefore, invest in gold this festive season or not?
What do experts say?
According to Colin Shah, Founder and MD, Kama Jewelry, there has been a ‘paradigm shift’ in how buyers perceive the yellow metal.
“People have largely moved on from purchasing gold for investment purchases to a fashionable statement wearable. With this backdrop, along with rising income levels and increasing purchasing power among the buyer class, we foresee this festive season as one of the best,” Shah told Mint last month.
According to Amit Khare, Associate VP, Ganganagar Commodity Limited (GCL), the yellow metal will be in great demand till November.
“In a familiar trend, Indians, during festivals, will go to jewellery stores, driving an anticipated rise in demand. As per the previous five years' pattern, gold generally makes a bottom from August-September. So, this year, we expect the same,” Khare said.
Meanwhile, Yashoraj Tyagi, COO and CTO, CASHe, noted that ‘festivities often mean individuals have more disposable income that they prefer to invest in assets like gold, aiming to safeguard their financial stability.’
How to invest in gold?
This can be done in the form of jewellery, coins, bars, gold-exchange traded funds, gold funds, sovereign gold bond scheme, etc. In fact, the metal is one of the most-preferred investments in the country, according to Groww.in.
Which factors influence gold rates in India?
The single most important factor is the metal's prices in the global market; when the international rates go up, the rates in India also change.
(Disclaimer: The views expressed must be ascribed only to the experts quoted here.)