Gold and silver are considered as better options as a safe investment. However, due to the Corona epidemic, its price is constantly fluctuating. Gold and silver prices reached record highs in August last year, after which it has declined. At this time, gold is at a discount of about 9 thousand rupees from the record height, at a price of around 47 thousand per ten grams. At the same time, silver is also available at a discount of about 8 thousand rupees, at the price of 68 thousand per kg. Due to the increasing corona cases and interest rates not being raised in the US, they may see a rise in their prices. According to market experts, there is no expectation of any further rise in the next one to two months, but talking about the long term, by the end of the year, gold and silver can once again reach near record prices. If you talk about two to three months, then you can see a rise of 1-2 thousand in the price of gold and 3-4 thousand rupees in the price of silver.
22 percent rise in silver price
The Silver Institute is bullish on silver and estimates that the purchase of bars and coins can reach a 6-year record level of 72.8 lakh kg (257 million ounces) globally in 2021 this year. According to the Silver Institute, in 2021, the global demand for silver from investors and industries is expected to increase to 29 million kg (102.5 million ounces), which will be the record demand for the last eight years. According to the World Bank, in 2021 this year, the price of silver can increase up to 22 percent. Its prices in the domestic market can go up to 75-80 thousand rupees per kg by the end of this year. The rise in silver prices will be supported by industrial demand. Unlike gold, its industrial demand is high. Gold is most commonly used as jewelry in addition to investment, while silver is used in industries ranging from medical industry. Silver is also used in EV and both in 5G network and they are going to grow in the future. Due to this, the price of silver is expected to rise more.
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Gold will once again cross 50 thousand
In August last year, gold had gone to a record 56 thousand in August. However, after that its price started to decline and its prices are currently close to 47 thousand in the domestic market. According to the World Gold Council, in the first quarter of this year, in January-March 2021, gold demand in India increased by 37 per cent to 140 tonnes. Before the Corona epidemic last year, its demand was 102 tonnes in January-March 2020. In January-March 2021, the demand for bars and coines also reached a record level of 6 years. Experts believe that this time the price of gold can reach the level of 50-52 thousand again in the next few months as the cases of corona infection have increased rapidly and interest rates have not increased in the US as well, due to which the trend of investors is safe investing. Heading towards This will increase the demand for gold and will strengthen its prices.
(Based on Kedia Commodity Report and interaction with Anuj Gupta, Vice President (Commodity & Research), IIFL Securities)