Gold to Become Unaffordable for Common People? Prices May Cross ₹1,00,000 Per Tola!
According to financial analysts, long-term investors may still find gold to be a safe investment option, as its price is expected to continue rising. However, short-term investors should be cautious as price fluctuations are also possible.
Hyderabad: Gold prices continue to rise, making it increasingly difficult for common people to afford it. According to a recent report by BofA Global Research (Bank of America Global Research), the price of one ounce (28.3 grams) of gold in the international market is expected to reach $3,500 in the next one and a half years. This means that in India, the price of 10 grams (one tola) of gold could surpass ₹1,00,000.
Experts suggest that if non-commercial gold purchases increase by 10% in the 2025-26 financial year, the price of gold may reach this level. The report further states that even if non-commercial purchases rise by just 1% in 2025, the average price of gold in the international market could still reach $3,000 per ounce.
Table of Contents
Why Are Gold Prices Increasing?
- Chinese Investment in Gold:
A major Chinese insurance company is planning to invest 1% of its total assets in gold, which is equivalent to 6% of the global annual gold market value. This move is expected to drive gold prices higher. - Central Banks Increasing Gold Reserves:
Several central banks worldwide are restructuring their portfolios and planning to increase their gold holdings from 10% to 30%. If this plan is implemented, gold prices could surge significantly. - Stock Market Uncertainty:
Due to instability in the global stock markets, retail investors are turning to gold as a safe investment option, further contributing to rising gold prices.
Is This the Right Time to Invest in Gold?
According to financial analysts, long-term investors may still find gold to be a safe investment option, as its price is expected to continue rising. However, short-term investors should be cautious as price fluctuations are also possible.
What’s Next?
If the current trends persist, gold prices are expected to rise even further in the coming months. By 2026, the price of one tola (10 grams) of gold could exceed ₹1,00,000, making it increasingly unaffordable for the average consumer.
