Gold enthusiasts rejoice as gold prices experience a significant dip, opening up investment opportunities. Market anticipates a potential 5-10% further drop, making it an opportune time for investors to enter gold market.
Gold Prices on a Decline
In recent days, gold prices have witnessed a notable decline, causing a stir in the market. Official reports indicate a drop of approximately Rs 2,000 within a month, presenting an attractive prospect for potential investors.
In Bhubaneswar, price of 22 carat gold per 10 gms dropped from Rs 55,000 in September to Rs 53,000. Moreover, the first five days of October witnessed a further decrease of about Rs 1,100. Alongside gold, silver prices also took a dip, plummeting by Rs 7,000 per kg and currently standing at Rs 70,000 per kg.
Factors Contributing to the Drop
Market analysts attribute this plunge to the surge in US dollar rates, which has exerted pressure on the precious metal. The increase in crude oil prices in the international market has diverted investor focus towards oil, affecting gold investments.
Experts suggest that while the immediate trend seems inclined towards a decline, gold remains a promising long-term investment. They recommend considering paper gold or gold bonds, constituting around 5 to 6 per cent of the portfolio, over physical ornaments. Investments in gold sovereign bonds are encouraged for potential returns, reserving ornaments for those with specific requirements.
Golden Opportunities Await
Anticipating a continuous trend of crude oil investment, industry insiders forecast a potential further drop of Rs 1,500 to Rs 2,000 in gold prices. The upcoming festive and marriage season amplifies the advantage for consumers, with various shops offering enticing discounts on making charges and additional offers.
In simple terms, when gold prices drop, it's a great time to invest. If you're thinking about investing, take your time to choose what's best for you while the market is in your favor.