Buying gold is always considered a trustworthy investment. In 2020, the gold price reached an all-time high of Rs 56,191 per 10 grams. Analysts predict that the precious metal is likely to glitter more in 2021. They believe that outlook for the yellow metal is strong amid signs of economic revival post-Covid induced lockdowns and restrictions.
2020 began with gold at Rs 39,100 per 10 gram. The domestic price hit a low of Rs 38,400 in March from where it steadily reached Rs 56,191.
According to Vastupal Ranka, director of Rare Jewels from the House of Ranka Jewellers, the pandemic led to an increase in the price of the yellow metal and the stimulus triggered a sharp rise in investment buying in the domestic market. He said the outlook for gold remains strong, mainly due to fresh stimulus expectations. The price of gold in 2021 is likely to breach the level of Rs 63,000 per 10 gram.
This, he said, has turned out to be a lucrative deal for investors amidst the pandemic.
"I think 2021 will be a year when the prices will maintain a high number as we progress through the year. The year will be filled with many economic effects from the COVID-19," he said. Vastupal said that this is definitely a good time for investors to put their money in gold because there has been a substantial increase in the price for the last couple of months due to the pandemic.
"In addition to this, the price forecast for gold in the coming year will attract investors for it is a secure and profitable investment. It is important to know that gold is such a metal that has always recovered the fastest no matter what the situation," he said.
'More Investors Expected'
Saurabh Khandelwal, owner of Dhanvi Diamond, demand for physical gold in India has been weak for the past few years. It could take centre stage this year as the metal will attract more investors, credit the amount it returns during times of uncertainties.
He said that after a fall of Rs 2,000-3,000 at this level, the "price will go up again", provided the rupee remains stable.
READ MORE: Sovereign Gold Bonds: Should you invest? Explained
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