Mumbai: Gold, the timeless safe-haven asset, has dazzled investors with a meteoric rise, surging over 112% in the past five years to breach ₹1,10,000 per 10 grams on MCX.
From ₹51,610 on September 19, 2020, to a staggering 50% jump in the last year alone, the yellow metal’s rally — fuelled by Covid-19 uncertainties, the Russia-Ukraine conflict, geopolitical jitters, and Trump’s global tariffs — has left many pondering: sell now or buy the dip?
While equity markets such as the Nifty 50 yielded near-zero returns last year, gold ETFs performed exceptionally well, yielding 47% according to Value Research data as of September 21. “Investors flocked to gold amid economic volatility,” notes a market analyst, highlighting its allure when stocks falter.
Looking ahead, experts foresee continued upward momentum driven by supply constraints, ballooning global debt, and reserve builds in India and China. Short-term, prices could touch ₹1.20 lakh per 10 grams in the next year. Over five years, projections range from ₹1.70 lakh to a bullish ₹2 lakh-plus, potentially aligning with global forecasts of $4,000–$5,000 per ounce amid inflation and conflicts. “Warlike scenarios and central bank buys could push it higher,” warns one forecaster, though pullbacks remain possible.
For investors, the dilemma is real: lock in profits at peak levels or diversify for long-term gains? Advisors urge portfolio reassessment — gold’s role as an inflation hedge endures, but balance with risks. As Trump-era policies loom, will gold hit ₹2 lakh by 2030? The metal’s lustre suggests yes, but timing is everything.
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