Opinion
Mint Quick Edit | Gold: Eternal glitter?
Summary
- The precious metal has crossed ₹100,000 per 10gm and its sheen doesn’t seem to dim. Global economic uncertainty has a big role in the appeal of gold, but for how long will it keep investors dazzled?
There’s no dimming the sheen of gold, it seems. On Tuesday, its price hit ₹100,000 per 10gm, having gained as much as 20% in about four months. Its glittery performance has drawn attention to its role as a store of value.
Also Read: Mint Quick Edit | Gold’s price spike reflects a global anxiety
“The performance of gold over time highlights that the Indian housewife is the smartest fund manager in the world," billionaire banker Uday Kotak said in a post on X. That led another Indian business leader, Sridhar Vembu, who founded software company Zoho, to throw in his support. “Gold is money," he posted and said that even the poorest Indian knows this.
Also Read: Ajit Ranade: Hedge sovereign gold bonds but do not discontinue them
Indeed, gold’s consistent gains appear to justify the trust placed in its value by Indian households, though financial experts would advise investing more in equities. With the global economy under a menacing cloud of uncertainty and even US-issued paper assets losing their allure, gold is viewed as the ultimate wealth-keeper.
Also Read: Ajit Ranade: Much of today’s gold buying frenzy reflects a move away from the dollar
Whether its high price reflects sustainable demand, however, is unclear for the same reason. Panic money invested in this metal may be withdrawn if signs emerge of economic stability and assets that earn dividends and the like regain their relative appeal. The glitter of gold could yet dim.
