Gold price in Kolkata touched a record high on Monday with 10 grams of 24 karat gold selling for Rs 38,135. For the past few months, gold price in the city had kept soaring and in a month’s time, it has increased by approximately Rs 3,500 in the city.
This has been a nation-wide trend with the price reaching Rs 38,470 per 10 grams of 24 karat gold in New Delhi on Monday. In fact, price of gold has been increasing all over the world. With a volatile investment scene, people are going back to time-tested gold as a medium of investment.
According to the World Gold Council, in spite of the price rise, sale of gold in the country has increased. The impact on consumers covers both sides of the spectrum though. Since the common Indian culture of associating gold with weddings remain, those preparing for marriages in the family are worried as they are at a loss how to buy jewellery within a stipulated budget. On the other hand, those who look at gold as investment are happy as they are assured of getting huge returns.
But without impressive liquidity in the market, no consumer items are doing well, say experts. And under this backdrop, expecting gold will get huge returns because of the price rise, may not be the right assessment. Hence, both gold merchants as well as common buyers are a worried lot and are pinning their hopes on the government. They hope that the government will do something that will increase liquidity in the market.
While hallmarked gold sold for Rs 36,725 on Monday, even a fortnight ago its price was just slightly over Rs 34,000. Given the steep rise, intervention of the government appears imperative, say experts.
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