Investment Tips: Is it right to invest more money in gold or silver, know this important thing before investing money...
Investing money blindly in gold? However, another metal may outperform gold in the long term. That metal is silver. A recent report from Motilal Oswal says that gold and silver have seen an increase of 13% and 11% in returns since the last New Year cycle. This cycle started from Akshaya Tritiya in 2023.
The report said, 'Earlier, supply and demand concerns have not had much impact on gold prices. Especially at a time when there was extreme market volatility. However, with the recent rise in gold prices, the possibility of some softening in prices cannot be completely ruled out.
Many factors can affect gold prices
Apart from this, it has been said in the report that many factors can affect the prices of gold positively or negatively. These factors include weaker-than-expected economic data, increased concerns about growth, expectations of more interest rate cuts this year, geopolitical tensions, concerns over rising debt, rising demand, and falling US yields. At the same time, the price of silver is likely to increase due to its usefulness. These factors may not affect him.
It has been said in the report that there is more fluctuation in gold during election years. Apart from this, elections are going to be held in more than 40 countries. America and India are also included in these. Market participants typically anticipate future events, such as a premature interest rate cut by the Federal Reserve. In such a situation, any unexpected major event can boost prices in the future. There has been a significant rise in gold and silver since the beginning of 2024.
There were ups and downs due to these things also
Additionally, it should be noted that the value of gold and silver has increased significantly this year due to geopolitical tensions and the monetary policies of the Federal Reserve. This has caused fluctuations in the bullion market.
According to the World Gold Council, central banks maintained the pace of gold purchases in the first quarter of the financial year 2023-24. This increased official holdings by 290 tonnes.
Additionally, it is also worth noting that the demand for bars and coins increased by 3 percent year-on-year to 312 tons. Whereas global jewelery demand declined by 2 percent and stood at 479 tonnes. Central banks, especially the reserve banks of Turkey, China, and India, have increased their demand for gold in the first quarter.
Apart from this, the report of Motilal Oswal says that since the beginning of the financial year 2023-24, the import of gold and silver has increased to more than 150 tonnes and 3000 tonnes. The increase in imports could be due to reasons such as the Comprehensive Economic Partnership Agreement (CEPA) deal with the UAE. It provides a 1 percent tariff rate quota (TRQ) benefit or import duty benefit for other bullion commodities to market participants.
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