Gold Price Trends in 2024: Significant Gains and Predictions for 2025
On January 1, 2024, the price of 22-carat gold jewelry in Chennai stood at ₹5,910 per gram and ₹47,280 per sovereign. By the end of the year, gold prices surged past ₹7,100 per gram, marking a significant increase of over 20% in a single year. This rise has outperformed traditional savings methods, yielding nearly three times the profit compared to the interest provided by banks.
Why Gold Remains a Preferred Investment
Gold continues to captivate investors worldwide due to its liquidity and versatility. From jewelry and gold coins to modern investments like gold bonds, ETFs, and gold-related stocks, people view gold as a reliable asset. Its ability to be converted into cash during emergencies, combined with its cultural and economic significance, makes it an essential part of many family economies.
Global and Domestic Factors Driving Gold Prices
Several factors contributed to the rise in gold prices in 2024:
1. Global Economy and Politics:
- The Russia-Ukraine conflict.
- Tensions between Iran and Israel.
- The impact of the U.S. presidential election, where Donald Trump returned to power.
2. Increased Demand:
- Countries like China stockpiling gold to bolster their reserves.
- Reduced gold availability and rising production costs.
3. Lack of Alternatives:
- Gold`s unique status as a globally accepted currency with no viable replacement continues to sustain its demand.
Gold`s Cultural and Economic Role in India
In India, gold holds immense cultural value and is integral to various events and ceremonies. Its liquidity and universal acceptance further elevate its status, attracting buyers from all walks of life. As demand continues to rise, gold remains a symbol of wealth and security for millions.
Outlook for 2025
Experts predict a further rise in gold prices in 2025. According to the World Gold Council, gold prices may increase by 20-25% in the coming year. If this trend continues, the price of gold in India could surpass ₹75,000 per sovereign by the end of 2025.
Such a surge would have a significant impact on the lives of lower and middle-class families, further highlighting the importance of strategic financial planning.
