New Delhi [India], October 18 (ANI): Gold prices are expected to hit the record level of Rs 1.50 lakh per 10-gram level in coming months as it is showing unprecedented momentum in the global and domestic markets bolstered by the central bank purchases and strong public demand, particularly in China and Japan, according to Anantha Padmanaban, founder member and former chairman of the All India Gem & Jewellery Domestic Council (GJC).
“The best I can see is around Rs 1.50 lakh per 10 grams is what I expect unless and until there is a correction nearby,” Padmanaban told ANI in an exclusive interaction on Friday, adding that this level could be reached in the coming months if trade talks between China and America fail and the Russia-Ukraine conflict continues.
In India, the spot rate is currently around Rs 1.31 lakh per 10 grams on MCX. Padmanaban also expects a temporary moderation to around Rs 1.15 lakh if there is a short-term correction.
“If you see whenever it peaks, there will be a correction. But when is that peak? That’s the question mark today. We thought USD 3,300 (per ounce) is the peak, then USD 4,000 is the peak. Now USD 4,500 is very nearby. Anytime tonight, it can also cross USD 4,500. Now the American bank says USD 5,000 is their prediction. We don’t know. Things are going crazy,” he said.
Talking about the factors for higher prices at the global markets, he said “the main reason is that central banks are buying, and now even the public has started buying. Yesterday, I read that in China and Japan, people are going to jewellery stores and purchasing physical gold. So it’s at its peak, everyone is going for gold,”.
The gold price has gone up by USD 150 per ounce within 30 hours. The yellow metal never reacted like this in history, he said.
He also highlighted that Indians are holding gold worth trillions of rupees in their households.
“India has the highest position of gold we have around, including the public position. It comes to around 25,000 to 30,000 tons. Now today it’s going into trillions (rupees). We are not able to calculate it,” he said, adding that that’s the value of the holdings by all the Indians, and the RBI both put together.
On making gold more affordable, he recommended to opt for lower carats of gold for making jewellery.
“A point has come today; people cannot afford to buy a 12,000 rupees per gram. So we have to think of 18 carat jewellery or 14 carat jewellery. My view is that going for 14-carat jewellery straight away will be very good because the consumers have to pay only Rs 7,000 or Rs 7,500 per gram.”
He further suggested industry-wide standardisation and urged all Indian jewellery associations to adopt a uniform 14-carat standard to avoid consumer confusion over varying caratage options.
Padmanaban also requested the government to revive the gold monetization scheme with simplified KYC norms.
“The only thing they need is to issue no KYC for up to 500 grams. If you do this, there will be a surplus. There will be 5,000 tons of gold coming into the banks.”
Padmanabhan stated that the country imported approximately 600 tonnes of gold last year, compared to the expected 500 tonnes this year, with domestic consumption decreasing from around 800 tonnes to nearly 700-750 tonnes. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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