As gold prices soar past ₹80,000 per 10 grams, investors are increasingly drawn to the yellow metal. On Thursday, October 24, 2024, 24K gold is priced at ₹80,080, with 22K at ₹73,410 and 18K at ₹48,056 per 10 grams. With global uncertainties and market volatility, many are wondering if this festive season is the right time to invest in gold—and silver, which has also been on an upward trend.
Gold Prices Today: What’s behind the surge?
Gold’s recent rally is largely driven by international market trends, particularly in the U.S. where economic indicators, including jobless claims, are closely watched. According to Jateen Trivedi of LKP Securities, “Gold’s rise is supported by Comex gains, nearing $2,750 per ounce, along with the favorable interest rate cycle.” As geopolitical tensions and central bank buying continue, gold prices are expected to remain elevated. Investors are also paying attention to the U.S. elections, which could further fuel gold’s safe-haven appeal.
Silver shines
Silver, often viewed as a counterpart to gold, has seen a significant rise, touching ₹1.01 lakh per kilogram. The demand for silver is largely driven by its industrial uses, particularly in sectors like electronics and electric vehicles. Market experts believe silver’s momentum will continue, with projections suggesting it could reach ₹1.25 lakh per kilogram in the coming year. “Rising industrial demand, high domestic imports, and ETF buying have all been supportive for silver,” says Manav Modi, a bullion analyst at Motilal Oswal Financial Services.
For those looking to invest in gold, the consensus among experts is clear: buy on dips and diversify. With 24K, 22K, and 18K gold offering a range of price points, investors can choose what best fits their budget and investment strategy. Gold is traditionally seen as a hedge against inflation and economic uncertainty, making it an ideal choice for those looking to protect their wealth.
Silver, on the other hand, offers a unique opportunity due to its dual role as both a precious metal and an industrial commodity. “Silver’s strong long-term bullish break is likely to continue, supported by lower interest rates and a revival in industrial activity,” says Bhavesh Jain of Edelweiss Asset Management. Silver ETFs provide a convenient way for investors to gain exposure without the need for physical storage.
While both gold and silver present attractive investment opportunities, experts advise caution. Kotak Securities’ Anindya Banerjee recommends a staggered buying approach to capitalize on potential dips in the market. This strategy allows investors to accumulate gold and silver over time, reducing the risk of buying at the market’s peak.
Nirav Karkera, head of research at Fisdom, suggests allocating 5-15% of your portfolio to silver, particularly for aggressive investors looking to diversify. Meanwhile, Colin Shah, MD of Kama Jewelry, advises buying gold during festive dips, as further price increases seem likely in the coming months.
As both gold and silver continue to shine this festive season, the key is to adopt a balanced investment strategy. Gold remains a reliable hedge against inflation and uncertainty, while silver’s industrial demand makes it a compelling addition to any portfolio. Whether you’re investing in 24K, 22K, or 18K gold—or exploring silver’s potential—the best approach is to stay patient, buy on dips, and diversify your holdings for long-term gains.
