Dhanteras Sees Record High Gold Prices, Offering Investors a 30% Annual Return

New Delhi, October 29: As the nation celebrates Dhanteras today, the first day of the five-day Diwali festival, many Indians are investing in gold and silver as a tradition believed to invite prosperity. But this year, for those who invested in gold last Dhanteras, it’s more than just tradition that’s rewarding. In the past year, gold prices have soared by over 30%, making it a lucrative choice compared to other investment avenues.

Last Dhanteras, 24-carat gold was priced at Rs 60,750 per 10 grams in Delhi's bullion market, which has now surged to Rs 79,940 per 10 grams. Although prices dipped slightly on Monday and Tuesday, just two days ago, gold hit an all-time high of Rs 80,440 per 10 grams. With a year-on-year gain of 31.59%, the returns from gold have outperformed the stock market, which offered a 23.5% return over the same period.

Market Analysis: Reasons Behind Gold’s Surge

Market experts attribute the sharp rise in gold prices to global geopolitical tensions and the changing monetary policies of central banks worldwide. Bullion market expert Mayank Mohan notes that global economic uncertainty has spurred investors to seek safer investments, including gold. With central banks now easing interest rates and increasing their gold reserves, international prices for the metal have been well-supported.

Mohan also points to domestic demand during the festive season as a contributing factor to the price hike. “Dhanteras, Diwali, and the upcoming wedding season drive a strong demand for gold in India, keeping prices high,” he added. Cultural beliefs around gold’s association with family prosperity further fuel this demand, as people often invest in gold, even in small amounts, during these auspicious times.

Looking Ahead: Will Gold Continue its Upward Trend?

However, experts caution that this past year’s significant gains may not guarantee similar returns by next Dhanteras. International conditions, especially geopolitical tensions, can influence price trends. If global tensions ease, gold prices might stabilize or even drop. Experts advise small and retail investors to conduct thorough analyses before making gold investments, as fluctuations can affect returns.

While the future remains uncertain, this year’s Dhanteras has certainly marked a high for gold investors, with significant returns reflecting both cultural and financial optimism around the glittering metal.