Gold glitters with 32% gain, highest since Samvat 2067
Business Standard|November 01, 2024
Samvat 2080 was the best year for gold and silver, with the two precious metals delivering 32 per cent and 39 per cent, respectively, despite a 9 percentage point (900 bps) reduction in import duty, which led to a 9 per cent fall in domestic gold prices shortly after the announcement.
RAJESH BHAYANI
Gold glitters with 32% gain, highest since Samvat 2067

These returns are the highest after Samvat 2067.

The previous notable year was 2011, corresponding to Samvat 2067, when gold returned 36 per cent and silver 40 per cent.

The year 2011 was the time when gold prices surged above $2,000 per ounce, and silver prices peaked at $49 per kilogram.

During that time, Indian precious metals also experienced a significant jump.

The price gains in Samvat 2080, which ended on Thursday, can be attributed to three key global factors.

World Gold Council (WGC) in its latest September quarter report on gold demand trends stated that gold prices continued to climb following geopolitical uncertainty, stemming from both an escalation in West Asia tensions and the highly polarised US presidential election. The shift in global interest rate policy also supported the gold rally.

Consequent to high gold prices, the domestic jewellery industry also faced many challenges during the just-concluded Samvat.

Varghese Alukkas, managing director, Jos Alukkas, said: "This season, the Indian jewellery industry primarily faced challenges due to significantly high gold prices, increased competition from online retailers, and concerns about potential economic uncertainties, leading to a cautious consumer approach towards expensive jewellery purchases compared to last year."

Gold prices have risen by 60 per cent in the last two Samvat years, which changed the way consumers buy jewellery.

This story is from the November 01, 2024 edition of Business Standard.

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This story is from the November 01, 2024 edition of Business Standard.

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