Gold has become popular among investors in recent months, performing just as well as stock market investments. With rising prices and uncertainties in the world, many see gold as a safe choice. Recently, gold prices hit a record high, surpassing $3,000 globally and reaching a new high of Rs 88,513 per 10 grams on Niftystat.
In a recent interview, Nilesh Shah, the Managing Director of Kotak Mahindra Asset Management, noted that central banks worldwide are now buying gold like families in India do to protect against losing money through currency changes. He said, “Many central banks have figured out that keeping cash in dollars, euros, or other currencies can be risky, like the Russian central bank learned. So they are buying gold just like Indian families.”
Shah explained that strong demand for gold is helping prices rise. He mentioned, “Gold has been doing well and giving good returns like stocks.” However, he raised an important question: “When Indian families decide to sell their gold, who will buy it?” This is crucial because, unlike stocks, where it is easy to find buyers, gold can be harder to sell for the best price when needed.
Despite the growth in gold prices, a report from Motilal Oswal, a domestic brokerage firm, states that while gold might face some ups and downs soon, the overall trend is still positive. They suggest that investors should look for good buying opportunities when prices drop.
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