Samvat 2081: Gold's glitter, silver's sparkle may remain undimmed

Geopolitical tensions likely to support bullion; analysts recommend investors hedge portfolios with precious metals

- NIKITA VASHISHT & PUNEET WADHWA

The outgoing Samvat 2080 proved to be a good year for investors of precious metals as gold (up 39.7 per cent) and silver (44.3 per cent) generated stellar returns.

Indian equity benchmark indices, BSE Sensex and NSE Nifty 50, in comparison, gained 25.1 per cent and 27.9 per cent, respectively till October 18, 2024. The rise in precious metal prices, especially gold, was led by growth concerns especially in China, coupled with simmering geopolitical tensions in West Asia and the status quo on interest rates by most global central banks. According to analysts, supply crunch and a growing industrial demand fuelled the rise of silver prices in Samvat 2080, which began around the hour of Diwali in 2023.

They believe that factors such as the easing of monetary policies globally, ongoing geopolitical conflicts, and the upcoming US presidential elections are poised to influence gold prices ahead. "As central banks continue aggressive buying, the US Federal Reserve cuts interest rates, and geopolitical tensions persist, the gold is primed for a bullish surge that could shatter previous records," said Nigel Green, chief executive officer of deVere Group, a global consulting firm managing nearly $12 billion in assets under management.

Tables are turning