Gold prices in Ahmedabad reached a new high on Tuesday, crossing Rs 1 lakh per 10 grams. This is a sharp rise from 2007, when 10 grams of 24-carat gold cost just Rs 10,800. Over the past year, gold prices have increased by about 25%, from Rs 80,000 to Rs 1 lakh per 10 grams.
Experts believe that gold prices will continue to rise and may even surpass Rs 10 lakh per 10 grams in the next 20 years. They recommend investing in gold regularly rather than keeping money in savings accounts or fixed deposits.
How gold (10gm) price rose over 100 yrs (1925-2025)Mukesh Patel, an international tax expert told Mirror that it is not just about appreciation of gold prices but also about the value of INR – Indian rupee – going down. “However, my advice to people is to invest in gold, if you have surplus money.”
He further said that while salaries are not going to multiply, investment in gold and real estate shall help fetch amazing returns. “It is better to invest in tax-free options like Sovereign Gold Bond as they are tax-free and ownership is without any physical possession.”
Harshvardhan Choksi, 75, a Mahajan who still has his gold shop in Manek Chowk said they have seen gold prices fluctuating between Rs 100 and Rs 200 per 10 gram for 24-carat gold. “For instance, in 1977 when gold prices were around Rs 575 per 10 gram for 24-carat gold, a tenement in Paldi (with 80 sq yd construction on a 200 sq yd land) was sold for Rs 30,000. Today when gold has touched Rs 1 lakh per 10 gram, the same house would have cost over 1 crore.” Even a fiat car was available at Rs 36,000, said the jeweller.
Gold price correction expected
President of Ahmedabad Jewellers Association, Jigar Soni however said while gold prices may rise further in the long term, there could be a possibility of correction in the near future. “People can invest in the yellow metal at that time.” He also added that the exorbitant price hike has affected retail sales of jewellery, specifically gold.