In Indian culture, Gold is not just an investment. Rather an integral part of the culture and economy. It is a symbol of prosperity, wealth, social status and even traditions at times. Be it bridal jewelry or temple offerings, one can see gold in each and every part of India. But, have you ever given thought on the price fluctuations? What are the Gold prices in India? Has anybody ever done a comparative analysis from the 1970s to 2024? If not, then you are at the right place.
In this blog we will study each decade starting from the 1970s and understand how Gold prices fluctuated. Alongside that we will also see how it is evolving and how the dynamics are changing. Let’s begin.
The 1970s: Period of Stability
In this decade the prices were high but stable. Mainly because of stringent government regulations associated with black markets, imports and exports. Per 10 grams Gold Prices in India were average Rs.500. But the oil crisis in this decade caused a major shift. To curb the gold smuggling & hoarding, the government tried very hard to maintain a stable environment, yet the oil crisis left a huge impact.
The 1980s: Increased Prices & Economic Liberalization
This decade marked a huge shift in economic policies. There was an increase in demand due to traditions and culture practices and also due to increase in the disposable income of the people. The price at the end of this decade was around Rs.3000 per 10 grams. It was majorly due to geopolitical stress and inflation paving its way.
The 1990s: Volatility and Liberalization
Liberalization policy at the beginning of this decade was the major turning point. Import policies were relaxed because of which gold was available to all. What happened was- increased supply, globally changing prices and all this hiked the Gold price in India. By the end of these 10 years, the price was between Rs.4400 to Rs.5000 per 10 grams.
The 2000s: Bull Markets
In the early 2000s, the market for gold was bullish. Do you know why? It was the internet. The .com era burst open, there was geopolitical tensions due to 9/11. By the end of the decade Gold Prices in India jumped to almost Rs.20,000 per 10 grams. The highest spike since 1970. Apart from the internet, Gold ETFs were also introduced. Investment in gold, which attracted many investors, was another reason for the increase. In simple words, gold was used to hedge against inflation which created more retail demand for this metal.
The 2010s: High Prices and Global Events
In the 2010s, there was an unfortunate increase in the first two years only. By 2012, the prices surged to Rs,30,000. It happened mainly due to economic instability, global financial crisis and movement of many western countries towards Gold, as it was a safe haven for them. In India, demand spiked because the middle class could afford more. Thankfully, the second half of this decade balanced it all. Rs.35,000 by 2019. Though it was more but yet stable as compared to the first half. But who knows what will happen in the next 10 years right?
The 2020s: Pandemic
What no one believed could happen, happened in this decade. COVID-19 pandemic broke down every economic stability, every financial stability and even the purchasing power of people. People were in debt, countries faced deaths of lakhs of their residents. Despite all this, the prices of Gold were skyrocketing. Because banks were unable to give loans, people resorted to the safe-haven of Gold. In 2023 prices were around Rs. 65,000 and as of now its Rs. 71,000 (approx). As policies change, global tension rises and uncertainty remains, the prices will shoot even higher. Thus, be prepared.
Future Trends & Considerations
The current scenario and situations are different. Looking forwards there can be many new trends that can shape how Gold is priced in India. Nowadays, Digital Gold Investments are taking a lead. Similarly young investors are attracted to many gold-backed securities for putting their money.
But as rapidly everyone is moving towards sustainable practices and environment safety, it is obvious to say that the gold mining sector will definitely face heavy scrutiny. Moreover, how the government frames the import & export policies will play a huge role in determining the prices. One thing for sure is the demand for Gold during wedding seasons. Hence, seasonal fluctuations are another big factor in India.
Gold Prices in India: Final Thoughts
Gold is not just any metal. You might have seen its journey from the 70s and noticed that it has a certain allure. It also plays a huge impact on the economy of India. Every household wants to buy it but only some can afford due to the Gold Prices in India.
This metal will remain a valuable asset not only for the people but the country as well. Moving forward it is our duty as a citizen to keep a check on the prices both internationally and domestically. Because if we keep a tab on its trajectory then and only then we can do the financial planning to afford it.
No matter what anyone says, but: For an Indian woman Gold will be the savior in times of her family’s needs and mishappenings.
What is your take on the prices of Gold in India? Comment down below!