Dhanteras 2020: Gold is down 11% from an all-time high of Rs 56,379, recorded in August
Dhanteras 2020: Are you buying gold this Dhanteras? Usually, many consider the purchase of gold, silver and other metals, in the form of jewelry, coins or utensils, auspicious in Dhanteras. This time around, gold rates have risen 31% since Dhanteras 2019. The festivals of Dhanteras (November 13) and Diwali (November 14) tend to generate higher demand for gold and other earlier metals in jewelry stores. (Also read: Dhanteras 2020 – How to buy gold)
This is everything you need to know about the current gold prices in these Dhanteras:
Wealth planners say the preference to buy physical gold domestically for social and cultural reasons rather than buying it for investment.
Gold has gained almost a third so far this year (so far this year), so it is recommended to restrict purchases to small amounts, they add.
Gold is down about 11 percent from a record high of Rs 56,379, recorded in August.
What the experts say
Ravindra Rao, Vice President of Commodity Research, Kotak Securities, Mumbai:
“In India, gold is considered an asset class, but it also has a traditional meaning. It is considered auspicious to buy gold in Dhanteras. With prices hovering around record highs in these Dhanteras, the key question is whether gold is still a good one. investment or not. If we look at the factors that have helped gold climb record levels this year, it is likely that most of it will prevail in the coming months and this makes gold a good investment. “
“Gold is seen as a safe haven that benefits in times of economic and political risk. Gold also wins in an environment of low interest rates as it reduces the opportunity cost of holding the non-interest bearing metal.”
Rahul Agarwal, Director, Wealth Discovery, New Delhi:
“The yellow metal has been the best performing asset this year as the economic uncertainty triggered by COVID-19 pushed investors to park their funds in safe haven assets such as gold. Gold prices have risen by almost 30 % this calendar year … Despite the correction, domestic gold prices are still hovering around the levels of over 50,000 rupees / 10 grams. “
“While the yellow metal’s appeal as a safe haven is still at stake due to an increase in COVID-19 cases worldwide, the spectacular performance it has delivered in the last year is unlikely to be repeated, and the prices are expected to remain near current levels with a small positive bias. “
“With the opening of economies around the world, the expectation of an effective vaccination that will come sooner and the clarity about the election of the US presidency, we expect gold prices to be moderate in the short term.”
Non-physical gold
Financial experts suggest preferring non-physical gold over physical gold from an investment perspective. Gold exchange-traded funds, gold funds, gold fund of funds, or sovereign gold bonds are some of the popular ways to invest in the yellow metal.
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