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Whither Bullion In Samvat 2070?


wealthymatters

Gold has offered negative returns for the first time in fifteen Samvat years.With a price decline of 0.5 per cent or Rs 140 on the last day of  Samvat 2069 ( Saturday), standard gold price in Mumbai’s Zaveri Bazaar recorded a 4.7 per cent decline during the entire Hindu calendar year from the level of Rs 31775 per 10 grams a year ago.

Gold offered around 19 per cent returns in 2068 followed by a handsome over 25 per cent positive returns in the previous three years.

With the steepest fall in 15 years, silver with its close at Rs 49795 a kg, offered 20 per cent loss to consumers this year. The white precious metal had offered 14 per cent negative returns to buyers four years ago in 2064.

Historic prices of gold and silver on Diwali day

So where is gold headed in Samvat 2070?Your guess is as good as mine.Personally I am inclined to bet on the price moving sideways and probably lower if Americans and Europeans start selling gold as their economy picks up.I’d be surprised if the price rose,but I can’t rule that out.Gold price has previously remained range bound for 15 years at a stretch.So perhaps this is one other such very long wait…….Time will tell.

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About Keerthika Singaravel
Engineer,Investor,Businessperson

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