Gold shines brighter on global economic growth, rapidly expanding money supply

Gold shines brighter on global economic growth, rapidly expanding money supply

Besides purchasing physical gold, one may consider instruments such as Gold ETFs and Sovereign Gold Bonds. Both have advantages of higher yields, tax sops, guaranteed purity, and so on.







Kshitij Purohit









November 06, 2021 / 07:41 AM IST





Kshitij Purohit, Lead Commodity & Currency at CapitalVia Global Research

Purchasing a gold coin or jewellery on the occasion of Diwali or Dussehra is considered a wise decision not only for its monetary value, but also for its social value. In India, gold has traditionally been regarded as the safest form of investment. It is associated with auspicious occasions such as Diwali, Dussehra, and Akshaya Tritiya in our country. As the holiday season approaches, gold demand rises.

This year, jewellers anticipated a significant increase in sales because the price of gold has not increased significantly throughout the year, despite the fact that other asset classes such as the global equity market and the metal market are at all-time highs, but gold is down around 15 percent, or Rs 8,751, from its record high of Rs 56,191 per 10 grams on the MCX. Due to massive stimulus in the global market and near-zero interest rates