This Dhanteras marks a notable shift in gold’s perceived role, transitioning from a decorative item to a vital strategic asset. Mr. Inderbir Singh Jolly, CEO of PL Wealth Management, provided insights into the current market trends surrounding gold. He noted that spot gold prices worldwide have recently surpassed US $4,300 per ounce, representing the largest weekly increase seen in nearly 20 years. In India, the price has risen to around ₹1,31,699 per 10 grams for 24-carat gold, with premiums reaching ₹782 per 10 grams—the highest in over a decade. This rise in gold prices is attributed to various factors, including a weakening dollar, anticipated interest rate cuts in the U.S., and aggressive purchases by central banks.
Analysts at Goldman Sachs have compared the current uptrend to the significant price increases of the 1970s, emphasizing that this rally is driven by actual demand rather than speculation. Importantly, the share of gold demand for investment in India is increasing, with consumers preferring coins and bars over pricier jewellery as fabrication costs rise. However, these record-high prices may lead to a projected decline in jewellery demand this festive season. Culturally, gold remains a vital part of India’s spiritual and social fabric. For generations, gold has been viewed as a protective asset against misfortune and a way to seek divine blessings—especially during auspicious occasions like Dhanteras, which celebrates Goddess Lakshmi and the idea of prosperity.
Historically, gold has been handed down through generations as both a gift and a legacy, symbolizing an asset that withstands market fluctuations and time. Mr. Jolly emphasizes that this Dhanteras, gold serves as a connection between cultural traditions and investment strategies. For investors, the advice is clear: make purchases thoughtfully, balancing ritual importance with financial wisdom, while focusing on quality, liquidity, and prudent portfolio allocation over emotional decisions.
