Gold prices are steadily increasing in India, making it less accessible for the average person. In cities like Delhi, Jaipur, Lucknow, and Chandigarh, the price of 24-carat gold is ₹1,46,200 per 10 grams. The rate for 22-carat gold is around ₹1,31,790.
Gold Offers Substantial Returns
Over the past few years, gold prices have seen a significant rise, greatly increasing the wealth of investors. In 2000, 24-carat gold was only ₹4,400 per 10 grams. By 2020, it had risen to ₹50,000. Today, it exceeds ₹1,40,000 per 10 grams. This means gold prices have nearly tripled in just six years. Statistics indicate that gold prices in India have grown at an average annual rate of 10.83 percent (CAGR) over the past 30 years.
Why are Rupee Values Decreasing?
The devaluation of the rupee and rising inflation are key factors. Global tensions, uncertainties, and continuous buying by central banks drive the demand for gold as a safe haven. Consequently, gold prices have increased by 5-7 percent in American dollars. Considering the lucrative returns on gold, investing will be beneficial.
What Will Gold Cost in 2050?
Currently, gold is above ₹1.40 lakh. If it continues to grow at a CAGR of 14.6 percent for the next 25 years, the price of 10 grams of gold could reach ₹40 lakh by 2050. This implies that ₹1 crore will not buy as much gold then as it does today. It’s essential to invest smartly by understanding inflation rather than merely saving money.
Factors Responsible for Price Increases
These calculations are approximate and depend on global factors, such as interest rates, the dollar’s position, central bank policies, and the global economy. However, based on estimations, gold could cost ₹40 lakh per 10 grams by 2050.
Silver Prices Also Surge
Silver prices have also surged, increasing by ₹3,600 to reach a new record level of ₹2.92 lakh per kilogram in the national capital on Friday. Stockists continue to buy silver, leading to this record increase. The Indian Bullion and Jewellers Association provided this information. However, the price of 999 purity gold decreased by ₹1,300 to ₹1,46,200 per 10 grams (including all taxes). In the previous trading session, it was ₹1,47,300 per 10 grams. On Thursday, silver closed at ₹2,89,000 per kilogram. According to traders, despite a weak global trend, continuous industrial demand has kept silver strong. Since January 2016, silver has already risen by 49,100 rupees or 19 percent. On January 8, its price was ₹243,500 per kilogram. Silver has outperformed gold for the second consecutive year, providing a return of 22.4 percent so far. Meanwhile, spot gold and silver prices continued to decline for the second day in the international market. With a strong dollar and reduced geopolitical risks in West Asia, prices have fallen.
