Mumbai: There is a period of great boom in precious metals gold and silver. Due to the Corona virus, the economies of all the countries including India are caught in the recession. Due to which the value of global currencies is decreasing. In such a situation, big investors are increasing investment in gold and silver for safe investment. As a result, prices are rising. The general belief is that gold and silver prices keep increasing from every year to year.
In the last 10 years, where gold has given a fantastic return of two and a half times i.e. 150%. On the other hand, silver has provided only 30% returns. Ten years ago, gold was Rs 20,585, which has increased and now has reached Rs 52,000 per ten grams. Whereas silver was Rs 47,030 per ten grams 10 years ago, which has now reached only Rs 62,000 per kg.
Safe and excellent returns in gold
It is true that gold has always given good returns in the long term ie long term. If we look at the data of the last 10 years, we will find that even though there has been negative return in a year, that is, prices have also come down, but in the long term the average return has been good. And even if the prices have decreased, it is very modest. In 10 years, in the three years of 2013, 2014 and 2015, gold prices decreased by 5%, 8.3% and 5% respectively. But before that in 2010, 2011 and 2012, for three consecutive years, there was a strong increase of 24%, 32% and 12% respectively. And since 2016, the price of gold is continuously increasing. In 2016, 2017, 2018 and 2019, there has been a growth of 1%, 5%, 8% and 24% respectively. So far in 2020, there has been a jump of 28%. In this way, the total value of gold has increased by 150% in 10 years. Such safe and excellent returns are rarely available elsewhere.
High fluctuations in silver
In contrast, silver has not given as much returns in the long term as it has in gold. During the 10 years, silver has received only 30% returns. The reason for this is that investment demand in silver is not as much as it is in gold. The demand for silver remains mainly for industry sectors and personal consumption. Central banks only buy gold. Nevertheless, when gold rises more, silver is also betting and prices start rising. But due to more betting, the fall in silver also comes more. In the year 2013, there was also a steep decline of 24% in silver. 2014 and 2015 also saw recession of 16% and 8% respectively. However in 2016 there was a rise of 19%. After that in 2017 and 2018 again it fell by 4% and 0.5%.
71% jump in silver
The highest rise in silver in the last ten years was in 2010 itself. That year there was a tremendous jump of 71% in silver. But the next year grew by only 8%. However, there was a rise of 14% in 2012. Last year in 2019 also silver recorded a jump of 22%. And by 2020 there has been a 30% rise so far. Analysts are now expecting silver to reach Rs 75,000 and gold to reach Rs 62,000 by next year.
All round demand for gold
The speed of yellow metal gold has been faster than ever. The main reason for this is that gold is considered an international currency. Central banks of all countries, including the Reserve Bank of India, also keep gold in their currency reserves, and in recent years, due to economic uncertainties, all central banks are increasing their gold reserves. China is at the forefront of these. Apart from this, since the increase in the debt burden of big countries, the confidence of investors on currencies has started to decrease, since then big investors are increasing their investment in gold to keep their portfolio safe. The effect of which is visible on its rising prices.
