Indians prefer gold investment more, especially at times of economic instability and during festivals. On October 26, 2024, the gold prices have been significantly high due to various factors both within the country and abroad. 22K gold currently is hovering at ₹7,295 per gram in India; at 24K, the price stands at ₹7,958 per gram, which recently hiked up as people indulge in gold buying during this festive season given certain global activities like U.S. elections and tensions between Iran and Israel. These are the very reasons why people think that one should invest in gold in India now or wait for gold rates to dip.
Understanding Current Gold Rates in India
Gold prices in India have been increasing constantly, and earlier in this season, rates had crossed the ₹80,000 mark for 10 grams. This is major because of Diwali and Dhanteras, wherein gold purchases are considered auspicious during these seasons. In addition to that, gold is a form of investment considered risk-free, as it is likely to act as an inflationary hedge, which makes it extremely scintillating during financial instability.
The increase in prices is not solely because of the festival season alone. Global uncertainties, mainly U.S. elections and rising tensions in the Middle East, are forcing investors to seek refuge in gold and further fuelling its prices.
Should You Invest in Gold in India Now? Peak High Demand Periods May Not Be the Best Entry Points
Traditionally, gold prices rise during festivals and marriages when demand increases, and this Diwali season too made no exception. If you are going purely for appreciation, it might be wiser to wait until after the festival season when prices could stabilize.
Here are the gold rates in India today across major cities:
| City | 22K Gold (₹/g) | 24K Gold (₹/g) | 18K Gold (₹/g) |
|---|---|---|---|
| Chennai | 7,295 | 7,958 | 6,015 |
| Mumbai | 7,295 | 7,958 | 5,969 |
| Delhi | 7,310 | 7,973 | 5,981 |
| Kolkata | 7,295 | 7,958 | 5,969 |
| Bangalore | 7,295 | 7,958 | 5,969 |
| Hyderabad | 7,295 | 7,958 | 5,969 |
| Kerala | 7,295 | 7,958 | 5,969 |
| Pune | 7,295 | 7,958 | 5,969 |
| Vadodara | 7,300 | 7,963 | 5,973 |
| Ahmedabad | 7,300 | 7,963 | 5,973 |
Geopolitical Tensions Add to Price Volatility
With the continued Iran-Israel and other geopolitical issues, gold is now an attractive investment, even though it fluctuates. During global tensions, gold usually appreciates when investors start to increase their safety-seeking nets. It will then increase short-term prices but is mainly a precursor for gold to stay strong as a general long-term investment.
Gold as a Long-Term Investment vs. Short-Term Gains
Gold has always proven to be a good hedge against inflation, and it is thought to be one of the safest long-term investment options. If your horizon of investment is long-term, then the present higher prices would not bother you much because your investment is likely to appreciate over time. However, if you have a short-term vision, then the value of buying when the price has skyrocketed is not valuable as you would not get returns quickly.
Verdict: Is It The Right Time To Invest In Gold In India?
With the prevailing gold rates today in India and global situations, potential investors can think about their investment time frame. If one is looking to earn some quick money, waiting till the prices come down once the festival season gets over might be considered ideal.
But for long-term investment, the prices today, though high, are still a pretty good entry point given the inflation-hedging qualities of gold. Also, the likelihood of widespread global uncertainties continues to keep the gold prices elevated.
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