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Future of Gold Price in India

We all know 2013 was a terrible year for gold since 1958 which has always been considered being safer when it comes to investing. Investors at all times had faith in gold prices and to forever earn profit, gold was supposedly the best investing strategy but seems like no one predicted such a glitch in the market scenario and 2013 turned out to be quite a scandal within gold market. Investors suffered losses they never expected which has drastically made them more careful about investing in gold and they’re rather encouraged to invest in stock, yet again!

Towards the last few months of 2013, demand for gold came all the way down by about 20%. Gold prices reduced by about 18%. There came such a situation once in 10 years, that investors started making gold outflows in order to save trouble for themselves, and what came out to be the conclusion? Total gold demand came down by 50%, that’s huge!!

But what will happen to the gold price in the future coming years?

It’s like throwing an arrow blindfolded to reach the target. It’s not very easy to predict the future of gold prices as 2013 was quite a lot unpredictable when came upon our economy.

  •     India requires being economically and financially stronger and inflation needs to be more stabilized. If not, gold prices might continue decreasing in the coming future time; in 2014 and 2015 as well.
  •     There have been predictions that gold prices will continue to reduce as there is less demand in the gold market. The 2013 shock has forced investors to take a step back from their all time profitable investing option to avoid getting deep in losses.
  •     When it comes to buying gold rather than investing, people have continued to buy gold as the prices according to them are in their favor though it’s more like a long term investment as even buying gold is investing. Such investors have faith in long term profitability of gold even after the gold crisis.
  •     There are certain private investors who also believe that the prices for gold and gold market will again boost up in long term investment market which might be a good strategy as gold market is not expected to stay low for a very long time.
  •     Gold prices have been disappointing the investors in giving results, their expectations and gold prices have been going in two different directions so the demand for investing in gold has been going down which is again one of the reasons for gold prices to go down. Everything is interrelated yet distinct which makes it difficult to make predictions.
  •     Most importantly, gold is for now best for long term investment, invest and forget and wait for it to boost because it will spike up in the coming future not particularly in 2014 or even in 2015 but after than it is expected to rise.
  •     The investors might not be too terrified with the fact of investing in gold. Even buyers can easily buy gold in these prices which will increase the overall demand for gold which will automatically increases gold prices in the market.
  •     The government has recently cut off import charges on gold to US$ 408 per 10 grams. As you can see even government is taking steps to avoid gold in losing its value.


Gold prices will amplify soon after the crisis as predications and expectations depict!


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Last modified: June 5, 2014