Even though most commodity prices are on the rise, gold and silver prices have posted negative returns this year so far. But this week seems to be going rather well for the bullion as a surge in commodity prices, inflationary concerns, energy constraints have weakened the global economic outlook. In addition, the IMF slightly revised its outlook for global demand for this year and next, which has led to some good buys in the case of gold and silver.
In an interview with Manisha Gupta, Surendra Mehta, National Secretary of India Bullion and Jewelers Association Ltd (IBJA),
said they were witnessing unprecedented demand in the gold market.
“I’ve been in the industry for quite a long time and have never seen so much demand in the past. The demand is there for jewelry as well as for ingots, ”he said.
“We have identified three main reasons for such huge demand. The first thing is the price, the second factor is that in the past two years people have not bought because of the Covid and thirdly, gold is regaining the trust of customers with the introduction of the coupon mechanism. delivery to India for bullion. and mandatory hallmarking with regard to jewelry, ”Mehta said.
“So customers are now coming to the market and asking for HUID branded jewelry. Compared to last year, attendances are almost 2.5 times which is amazing when it comes to the industry standard, ”Mehta added.
He expects gold to hit $ 2,200 in 1-2 years.
“In my opinion, prices could drop about 10% initially, but will increase by over 30% over the next 1-2 years. I think the bottom for gold might be around $ 1,650 an ounce, but the high side may be $ 2,200 an ounce. As for silver, the bottom can be $ 21 per ounce, but the top side can be as high as $ 29 per ounce, ”Mehta added.
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(Edited by : Anilkumar Narayan)