Gold & Silver Prices at Record High: Is it a Good Time to Invest?

Commodity expert Anuj Gupta’s advice on whether or not to invest in gold while its value is at an all-time high.

Image used for representational purposes

(Photo Courtesy: Reuters)

Video Editor: Sandeep Suman

The prices of gold and silver rose considerably in August. The coinage metals hit a record high in six years. At present, gold is valued at Rs 38,000 per ten grams and silver at Rs 45,000 per kilogram.

As the prices of these metals are projected to rise in the near future, the question on investors’ mind is: Is it a good time to invest? Do we buy gold or sell it?

The Quint talks to commodity expert, Anuj Gupta from Angel Broking, who explains the several reasons contributing to the steady inflation of the prices of gold and silver.

“Be it US-China trade war or be it US-Iran’s oil dispute or be it currency depreciation, we have seen all of them which have contributed to the rise in the values of gold and silver. There has been a return of 10.5 percent in the value of gold in the last quarter.”

Anuj Gupta, Angel Broking

When asked whether the metals’ prices will continue to hike in the future, Gupta answered in the affirmative, saying that the current geopolitical tension and trade wards will stretch given the manner in which the US-China trade war is escalating, along with the tax and the tariffs imposed. “There is no solution in the near future either, which is why there will be an inflation in the future,” he says.

The advice he has for investors regarding gold and silver is: Exercise caution, especially because gold and silver are at an all-time high. Thus, it will be safer to buy as needed. If investors have long-term investments in mind, the time is right to invest, since prices will keep hiking.

“Gold prices will fall once the interest rates drop, and inflation is a concern. But for those who are looking at long-term investments, they have several options. Like gold bonds, gold ETF or one can buy gold in electronic form through DMAT.”

Anuj Gupta, Angel Broking

On asking whether investors who are incurring losses in the share market should invest in gold, Gupta said, “Share market and gold have an inverse relationship. If we talk numbers, where Nifty has clocked a loss of 6.5 percent gold has clocked a high of 10.5 percent. Even if we look at it historically, whenever there has been a dip in the share market gold prices have shot up. Gold has always been seen as a safe option.”