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Gold Prices breach Rs 83000 Mark for the First Time in India

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For an average Indian family, gold is a huge investment. Right after a child’s birth, especially if it’s a baby girl, parents start dreaming about their marriage. They proactively start to engage in buying gold, whatever amount possible. This they do in hope that by the time the child reaches the marriageable age, they have enough gold to give her. Because gold is an investment, it can be redone as per the latest trends, keeping aside the few additional charges.

Now, if it were about, say, 2018, when gold prices rose to 30,000 per 10 grams, it was still a pretty chill game. But now the Gold Prices have crossed an all time high of 83,000 per 10 grams! What even do today’s parents do with so much inflation and skyrocketed gold prices?

Not just the buyers, but investors and jewelers too are in a tough position. While for some people it is a golden opportunity, for most of them it is not. What made the gold prices go up so high? Let’s find out.

The Dramatic Rise in Price

On Friday, January 24, 2025, the precious metal of 99.9 percent purity rose to hit a fresh lifetime high of ₹83,100 per 10 grams. The previous day, i.e. Thursday, it had closed at 82,900 per 10 grams, as per the All India Sarafa Association. So, it took a big jump of 200 in a single day, like never before. This is particularly because of strong demand in the market. On the futures front on the Multi Commodity Exchange (MCX) too, it touched ₹80,312 per 10 grams.

The difference in the spot and futures prices is primarily due to additional costs, like 3% GST on physical Gold.

Why the Increased Demand?

Now, the question is why is gold’s price reaching sky-high? As mentioned earlier, gold is a great investment option. People invest in gold to their best capacity, to use in times of need, like economic and political instability. But, with time, the demand has increased manifold, like it was never expected. This is partly because of the inflation and potential U.S. tariffs. Owing to this scenario, investors have turned to gold as a reliable store of value. 

Also, the U.S. Dollar is stronger than the Indian Rupee. So, any change in the difference also affects the economic market. The more expensive the dollar gets, the more expensive gold gets domestically since gold is traded internationally in dollars.

There’s also uncertainty surrounding government policies, such as import duties and inflation control measures which has further boosted the demand for gold. While other investment avenues like stocks and bonds may face volatility, gold continues to maintain its reputation as a stable and reliable asset.

How’s it affecting Buyers and Jewelers?

The dramatically increased prices have put people in a frenzy. Where once they conveniently relied on gold for weddings and festivals, now they have to think twice. The latest price has definitely made it an even more valuable asset. So much more valuable that retail shops have seen a huge drop in buyers. Of course, with such big numbers, who even would dare to still invest here? Everyone wants to, but not everyone can. And this is not the scenario with just middle-class people who have to think before buying. Even the richer lot is now in a tough spot. Looking at this, dealers have started to offer discounts in hope that at least something would get sold.

This just feels like a bad dream since prices have never been this high ever before. So, some buyers are holding back from making their gold purchase, hoping the prices would come down soon.

At this point, no one knows what’s coming next. With a constant surge, some feel now should be the time they invest, so they can profit later. Others feel that this is an all-time high, and they should wait for it to slow down. 

Conclusion

The crossing of ₹83,000 per 10 grams is a momentous occasion for the Gold Market in India. It reflects not just economic realities but also the emotional and cultural significance of gold in Indian society. While the investors who had already bought gold celebrate, it serves as a cautionary tale for others. Whether you’re planning to buy, sell, or simply admire its beauty, gold’s current journey is a reminder of its timeless value and enduring appeal.

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