| September 30
Akshaya Tritiya 2020 vs 2019: Gold price has skyrocketed 47.5 pct in just 1 year!
Buying gold is considered auspicious in India while celebrating Akshaya Tritiya fest. People buy gold on this day with the hope that it will lead to future accumulation of greater wealth. Significantly, those who bought gold last year on the occasion of Akshaya Tritiya on 7th May 2019, must be a very happy lot! The price that they bought gold at during this fest in 2019 is far lower than the current rate. They have made massive profit on their investment! How come? Just check gold price today! With Akshaya Tritiya 2020 arriving in just days, gold price today is Rs 46,820, while on 7th May 2019, gold price was Rs 31,726 per 10 gm! Yes, gold rate has skyrocketed more than 47.5 per cent!
So, one might get prompted to buy gold this Akshaya Tritiya as well. However, if we go back and see the gold price on Akshaya Tritiya in 2018, 2017 and 2016 we would find that gold price on Akshaya Tritiya was Rs 31,535 per 10 gm, Rs 28,861 per 10 gm and Rs 29,860. Hence, by comparing Akshaya Tritiya gold price of previous four years, we come to know that gold price had a tepid growth. So, will it be advisable for Indians to buy gold this Akshaya Tritiya? Investors should know that gold price has been breaking all-time records.
Keeping all these things in mind, Anuj Gupta, Deputy Vice President — Currency & Commodity markets at Angel Broking has recommended that investors should buy gold on Akshaya Trititya 2020. He said, "In medium term, gold price is expected to hit Rs 50,000 to Rs 52,000 as the gold price in international market is expected to hit 1,840 per ounce once it breaks $1,780 per ounce resistance. If we convert these global gold price levels into the MCX (Multi Commodity Exchange) Terms, it will fall around Rs 50,000 to Rs 52,000. However, much will depend upon how the global economy performs against the Coronavirus in coming months. If the COVID-19 virus continues to hit developed nations and the US gets caught in it like other G-8 countries like Italy, France, UK and Japan, then gold may emerge as an investment haven and in such a scenario, the global gold price may hit $2,200 per ounce levels in the long-term perspective and in domestic market gold price will skyrocket to around Rs 58,000 per 10 gm."
Speaking on the gold investment, Nitin Shahi, Executive Director of FINDOC said, "Gold is a hedge against inflation, if rupee has to lose its value due to inflation the gold will gain its price due to falling INR." Co-relating the gold price in next one year with currency risk and geo-political developments, Shahi said, "Gold is an international commodity and the prices are in dollar terms. Any fall in price of the base currency for Indian rupee, the price of gold will automatically rise. Gold prices are almost uniform pan-world as the prices are internationally denoted in dollar terms. Thus except the import duties which different countries have, the prices are similar. We can say it is an international currency."
Shahi said that gold is the best investment when markets are in state of panic as it covers above risks. He said, "USA in comparison to China has huge reserves. We expect China will have to increase gold reserves sooner than later. This will bring a spike in Gold prices. Many economists and surveys suggest that it is the Best Buy in these times."