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Tag: gold prices

  • Silver prices continue soaring as debt fears and geopolitical tensions send precious metals to fresh record highs | Fortune

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    As markets reopened Friday after the Christmas holiday, U.S. stocks were little changed, but precious metals saw plenty of action.

    Silver prices jumped 9.6% to top $78 per ounce for the first time ever. Gold rose 1.3% to a fresh record of $4,561 per ounce, and platinum surged 10.5% to its own high, while palladium leapt 13%.

    So far this year, silver has spiked 169%, platinum has shot up 172%, and palladium has soared 124%—all easily beating gold’s year-to-date gain of 73% as well as Nvidia’s 42% pop and the S&P 500’s 18% advance.

    The latest rally came after the U.S. launched strikes on Islamic State targets in Nigeria on Thursday, adding to other geopolitical tensions.

    Earlier in the week, the Trump administration continued to pile on more pressure on Venezuela by targeting additional oil tankers, squeezing a key source of revenue for the Maduro regime.

    Meanwhile, the Pentagon sent large numbers of special-operations aircraft, troops and gear into the Caribbean, sources told the Wall Street Journal.

    The extra military assets join a flotilla of Navy ships that has been building up in the region for months, while President Donald Trump hints that U.S. attacks will soon expand from suspected drug boats to targets on land.

    With the threat of a new regional conflict breaking out, investors have sought out safe-havens. At the same time, debt worries have made precious metals appear safer than other assets like the dollar and yen.

    Robin Brooks, a senior fellow at the Brookings Institution, said in Substack post on Sunday that the so-called debasement trade has roared back, pointing out that precious metals began galloping higher after Fed Chairman Jerome Powell hinted at rate cuts over the summer.

    “First, this trade is clearly triggered by Fed easing and related worries about debt monetization,” Brooks wrote. “After all, Chair Powell’s dovish speech at Jackson Hole on Aug. 22 and the latest Fed rate cut on Dec. 10 were big catalysts for precious metals to take off.”

    As the U.S. and other top economies hurtle toward increasingly unsustainable levels of debt, investors fear that those governments will let inflation run hotter and erode the value of their bonds to lighten the burden, rather than reining in deficits.

    This debasement trade isn’t just showing up in precious metals, Brooks added, noting that countries with low levels of public debt such as Switzerland or Sweden have seen their currencies move in tandem with gold and silver prices.

    “It’s noteworthy that Sweden is so much in focus. The Krona has traditionally been a highly volatile currency that didn’t have safe haven attributes. The debasement trade is changing that,” he explained.

    Similarly, market veteran Ed Yardeni attributed the surge in precious metals to concerns about excess stimulative effects of U.S. monetary and fiscal policies next year.

    That’s as Wall Street expects more rate cuts from the Federal Reserve, which is also buying bonds again, while consumers will start to notice Trump’s tax cuts. Trump has also teased the possibility of “tariff dividend” checks, though Congress would have to approve them.

    “In any event, the federal budget deficit could balloon significantly during the first four months of 2026, which might prompt the Bond Vigilantes to raise Treasury bond yields, causing a stock market correction,” Yardeni said in a note on Monday.

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  • At this rate, the price of gold could soar to $10,000 per ounce in just three years | Fortune

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    After surging nearly 50% so far this year, gold could skyrocket 150% as early as 2028 if its current pace keeps up.

    The precious metal topped $4,000 per ounce for the first time ever earlier this week, then got another jolt Friday, when President Donald Trump said he will impose an additional 100% tariff on China and limit U.S. exports of software.

    Stocks suffered their worst loss since the height of Trump’s trade war chaos in April. The dollar fell while gold jumped 1.5%, reinforcing its status as a safe haven asset as investors lose confidence in the greenback.

    In a note on Monday, market veteran Ed Yardeni, president of Yardeni Research, went over his earlier bullish calls on gold, which has repeatedly reached his forecasts ahead of schedule.

    During that time, he cited gold’s traditional role as a hedge against inflation, central banks de-dollarizing after Russia’s assets were frozen, the bursting of China’s housing bubble, as well as Trump’s trade war and his attempts to upend the world’s geopolitical order.

    “We are now aiming for $5,000 in 2026,” Yardeni added. “If it continues on its current path, it could reach $10,000 before the end of the decade.”

    Based on gold’s trajectory since late 2023, the price could reach the $10,000-per-ounce milestone sometime between mid-2028 and early 2029.

    Gold has also gotten a lift recently from the Federal Reserve’s pivot back to rate cuts last month, with policymakers shifting more attention to the stagnating labor market and away from fighting inflation, which has remained stubbornly above their 2% target amid Trump’s tariffs.

    While the Fed hasn’t signaled an aggressive easing cycle, the prospect of more rate cuts while GDP growth remains strong has added to inflation concerns.

    At the same time, soaring debt among top developed economies, including the U.S., has turned investors skittish on global currencies. That’s fueled a so-called debasement trade that bets on precious metals and bitcoin assuming governments let inflation run hotter to ease debt burdens.

    In a note on Wednesday, Capital Economics climate and commodities economist Hamad Hussain said “FOMO” is creeping into the gold trade, making it harder to objectively value the metal. He expects prices to continue rising, though the pace of gains will slow as key tailwinds weaken.

    On the bullish side, Hussain pointed to Fed rate cuts, geopolitical uncertainty, and fiscal sustainability concerns. On the other hand, he noted the recent gold rally came as the dollar was stable (until Friday) with inflation-protected bond yields higher—telltale signs of market exuberance.

    “As ever, the lack of an income stream makes it notoriously hard to value gold objectively,” he said. “On balance, we think that gold prices will probably grind higher in nominal terms over the next couple of years.”

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  • How Much Are Costco Gold Bars Worth Today? | Entrepreneur

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    Gold is hitting record prices this week, reaching above $3,500 per ounce for the first time on Tuesday and then hitting another milestone on Wednesday: $3,593.20 per ounce. Goldman Sachs predicted this week in a research note that gold prices could increase above $4,000 per ounce by mid-2026.

    “Gold remains our highest-conviction long recommendation,” Goldman Sachs stated in the note. In April, JPMorgan also predicted that gold prices would rise above $4,000 per ounce by the second quarter of next year.

    And the effects are being felt far beyond Wall Street.

    Related: ‘Affluent People Love a Deal’: These Luxury Items Are Flying Off the Shelves at Costco, According to the Company’s Longtime Chairman

    Wholesale retailer Costco, which sells up to $200 million worth of gold bars per month, began selling the commodity in 2023 when gold was at an average closing price of $1,943, per Macro Trends.

    According to CNBC, in September 2024, a one-ounce Costco gold bar cost $2,679. If a Costco shopper held onto their purchase this year, the same bar would be worth $3,549 this month, a gain of $870.

    Costco gold bar. Photographer: Clark Hodgin/Bloomberg via Getty Images

    Experts told ABC News that rising gold prices signify elevated economic uncertainty. In an environment of slow hiring and inflation above the Federal Reserve’s 2% target, investors are seeking low-risk investments, such as gold.

    “The probability of an economic slowdown has greatly increased, and people naturally look for a safe haven asset,” Duke Business School Professor Campbell Harvey told the outlet.

    Related: Are Costco’s Platinum Bars a Good Investment? Here’s What Experts Say.

    Gold has gained more value than alternative investments, like purchasing company shares on the stock market, according to the outlet. Gold prices have risen by more than 42% this year, greater than a 9% gain in the S&P 500, a 6% rise in the Dow Jones Industrial Average, and a 10% spike in the Nasdaq over the same time period.

    Costco had approximately 137 million members in 2024, up from 128 million in 2023, per Statista estimates.

    Gold is hitting record prices this week, reaching above $3,500 per ounce for the first time on Tuesday and then hitting another milestone on Wednesday: $3,593.20 per ounce. Goldman Sachs predicted this week in a research note that gold prices could increase above $4,000 per ounce by mid-2026.

    “Gold remains our highest-conviction long recommendation,” Goldman Sachs stated in the note. In April, JPMorgan also predicted that gold prices would rise above $4,000 per ounce by the second quarter of next year.

    And the effects are being felt far beyond Wall Street.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

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  • Gold prices have surged in 2024. Here’s how to get in on the gold rush

    Gold prices have surged in 2024. Here’s how to get in on the gold rush

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    Not all that glitters is gold, but the value of the precious metal has been surging this year.Gold prices have broken record after record, rising more than 30% in 2024 while hitting an all-time high of $2,748.23 this week.Video above: Treasure hunt that spanned New England overThe Federal Reserve’s recent dramatic half-point interest rate cut, geopolitical tensions and economic uncertainty surrounding the U.S. presidential election have created the conditions for prices to soar. The rally has been boosted by the central banks of China, India and Turkey easing their reliance on the U.S. dollar, as well as retail giant Costco stocking 1-ounce bullion bars.”Costco offering gold makes it as easy for a retail investor to buy gold as it is for them to buy household staples,” said Joseph Cavatoni, senior market strategist for the World Gold Council. “Buying gold has never been easier and more accessible.”While gold, typically invested in as a hedge against inflation, has shined this year, there are plenty of things to know before investors join the gold rush.Why hold gold?Traders tend to flock to gold during periods of uncertainty, betting that its value will hold up better than other assets, such as stocks, bonds and currencies, if an economy faces a downturn.”Between 2008 and 2012, the value of gold increased dramatically, as is evidenced by the 101.1-percent surge in the Producer Price Index (PPI) for gold,” the Bureau of Labor Statistics noted.”Gold does well in moments of risk. If you look at market drawdowns or systemic events in the market, that’s when gold really shines,” said Cavatoni.How do you actually go about buying gold?For a new gold buyer, Cavatoni says the first step is considering your objective in holding gold, be it to diversify your portfolio or as a safe-haven asset.From there it’s a matter of deciding whether to make the investment using financial instruments like gold-backed exchange-traded funds or by purchasing it in physical form.Both come with their own considerations. Delivery, storage and safekeeping, for instance, are all factors for holding gold in physical form.Another consideration when buying gold in the retail market is how the sticker price of the bullion compares to the spot price of gold.”You need to make sure that you’re comfortable with that price level — that you’re buying the investment that you want and not being offered something that might be a little bit more collectible,” Cavatoni said.From banks to reputable brick-and-mortar and online retailers, gold buyers have choices in where to invest. But Cavatoni advises having a “round-trip mentality” when purchasing physical gold, emphasizing the importance of the selling stage as much as the purchase process.”When it comes time to holding it for as long as you’d like and selling it, make sure you have a trusted partner that you can go back to and make that sale,” he said.Other things to keep in mind are the gold’s purity and the form it comes in.Products like gold jewelry might command higher premiums based off design and artistic value, which introduce more complexities.On the other hand, gold-backed ETFs free consumers from the considerations that need to be made when purchasing physical gold.”It’s just like buying a stock,” Cavatoni said. “You can do that commission-free on a lot of the platforms these days, so it’s very cheap to get in and out.”But as with any investment, Cavatoni says acting prudently and doing your homework when purchasing gold in any form takes precedence over speed.”If something sounds too good to be true, then it might be not true. Make sure you’re careful before you make the investment,” he said. “You don’t need to rush into owning gold.”

    CNN —

    Not all that glitters is gold, but the value of the precious metal has been surging this year.

    Gold prices have broken record after record, rising more than 30% in 2024 while hitting an all-time high of $2,748.23 this week.

    Video above: Treasure hunt that spanned New England over

    The Federal Reserve’s recent dramatic half-point interest rate cut, geopolitical tensions and economic uncertainty surrounding the U.S. presidential election have created the conditions for prices to soar. The rally has been boosted by the central banks of China, India and Turkey easing their reliance on the U.S. dollar, as well as retail giant Costco stocking 1-ounce bullion bars.

    “Costco offering gold makes it as easy for a retail investor to buy gold as it is for them to buy household staples,” said Joseph Cavatoni, senior market strategist for the World Gold Council. “Buying gold has never been easier and more accessible.”

    While gold, typically invested in as a hedge against inflation, has shined this year, there are plenty of things to know before investors join the gold rush.

    Why hold gold?

    Traders tend to flock to gold during periods of uncertainty, betting that its value will hold up better than other assets, such as stocks, bonds and currencies, if an economy faces a downturn.

    “Between 2008 and 2012, the value of gold increased dramatically, as is evidenced by the 101.1-percent surge in the Producer Price Index (PPI) for gold,” the Bureau of Labor Statistics noted.

    “Gold does well in moments of risk. If you look at market drawdowns or systemic events in the market, that’s when gold really shines,” said Cavatoni.

    How do you actually go about buying gold?

    For a new gold buyer, Cavatoni says the first step is considering your objective in holding gold, be it to diversify your portfolio or as a safe-haven asset.

    From there it’s a matter of deciding whether to make the investment using financial instruments like gold-backed exchange-traded funds or by purchasing it in physical form.

    Both come with their own considerations. Delivery, storage and safekeeping, for instance, are all factors for holding gold in physical form.

    Another consideration when buying gold in the retail market is how the sticker price of the bullion compares to the spot price of gold.

    “You need to make sure that you’re comfortable with that price level — that you’re buying the investment that you want and not being offered something that might be a little bit more collectible,” Cavatoni said.

    From banks to reputable brick-and-mortar and online retailers, gold buyers have choices in where to invest. But Cavatoni advises having a “round-trip mentality” when purchasing physical gold, emphasizing the importance of the selling stage as much as the purchase process.

    “When it comes time to holding it for as long as you’d like and selling it, make sure you have a trusted partner that you can go back to and make that sale,” he said.

    Other things to keep in mind are the gold’s purity and the form it comes in.

    Products like gold jewelry might command higher premiums based off design and artistic value, which introduce more complexities.

    On the other hand, gold-backed ETFs free consumers from the considerations that need to be made when purchasing physical gold.

    “It’s just like buying a stock,” Cavatoni said. “You can do that commission-free on a lot of the platforms these days, so it’s very cheap to get in and out.”

    But as with any investment, Cavatoni says acting prudently and doing your homework when purchasing gold in any form takes precedence over speed.

    “If something sounds too good to be true, then it might be not true. Make sure you’re careful before you make the investment,” he said. “You don’t need to rush into owning gold.”

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  • The US dollar is so strong that China’s central bank, among others, just keeps loading up on gold

    The US dollar is so strong that China’s central bank, among others, just keeps loading up on gold

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    Robust Chinese gold buying has sent prices of the precious metal to record highs.Reuters

    • China’s economy is struggling, leading to a surge in gold purchases as a safe-haven asset.

    • Central banks are on a gold-buying spree, contributing to record-high spot gold prices.

    • Other central banks are also snapping up gold to diversify their assets on the back of a strong greenback.

    China’s economy is in a funk and people are rushing out to buy gold as a safe-haven asset to hedge against economic uncertainties, sending prices of the precious metal to record highs.

    The country’s central bank has also gotten into the act, adding 60,000 troy ounces of gold to its stash in April, according to official data released on Tuesday. It marked the 18th straight month the People’s Bank of China was piling in on gold.

    But it’s not just about economic uncertainty. The heightened interest in gold is also a pushback to the strong US dollar, which is making it too expensive for emerging nations like China to import goods.

    The Dollar Index — which measures the value of the green against a basket of six other currencies — has risen 4% this year and 10% since the start of 2022. This is due to the Federal Reserve’s interest-rate hikes since March 2022, which tend to strengthen the dollar.

    The Chinese yuan has lost 1.6% against the dollar this year to date. It’s down 4% over the past 12 months and about 12% lower against the greenback since the start of 2022.

    Other central banks are also loading up on gold. Big gold buyers include China, Turkey, and India, the World Gold Council, or WGC, wrote in a report last week.

    “Accounting for almost a quarter of annual gold demand in both those years, many have attributed central banks’ ongoing voracious appetite for gold as a key driver of its recent performance in the face of seemingly challenging conditions: namely, higher yields and US dollar strength,” wrote the council.

    In all, the world’s central banks bought 290 tons of gold in the first quarter of this year — the strongest start to any year on record, per the WGC.

    Central banks are not done buying gold

    Even though central banks have bought a whole lot of gold since 2022, they may not be done yet, said the WGC.

    “Not only is the long-standing trend in central bank gold buying firmly intact, it also continues to be dominated by banks from emerging markets,” the WGC added.

    Emerging market central banks that bought gold in the first quarter of the year include Kazakhstan, Oman, Kyrgyzstan, and Poland.

    There are political motivations for central banks to diversify their assets, too.

    “It has become apparent that in some cases, nations that are not allied with the United States have begun to look to reduce their reserve mix away from dollars, as they perceive the risks of keeping these reserves vulnerable to sanctions,” JPMorgan analysts wrote in a March report.

    Governments aligned with the US are also adding gold to protect themselves against higher and more volatile inflation globally, the JPMorgan analysts added.

    The rush into gold assets may not bode well for the US dollar in the longer run, should the currency continue to gain.

    “A stronger USD would weaken its role as reserve currency,” economists at Allianz, an international financial-services firm, wrote in a report on June 29. “If access to USD becomes more expensive, borrowers will search for alternatives.”

    The spot gold price is now around $2,330 an ounce, off its record highs above $2,400 an ounce in April.

    Read the original article on Business Insider

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  • Stocks, oil skid as China’s COVID protests roil sentiment

    Stocks, oil skid as China’s COVID protests roil sentiment

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    Stocks and oil weakened on Monday as rare protests in major Chinese cities against the country’s strict zero-COVID policy raised worries about the management of the virus in the world’s second-largest economy.

    MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.6% after US stocks ended the previous session with mild losses.

    Australian shares lost 0.47% while Japan’s Nikkei stock index was down 0.37%.

    South Korea’s KOSPI 200 index retreated 1.35% in early trade and New Zealand’s S&P/NZX50 Index was off 0.4%.

    In China, demonstrators and police clashed in Shanghai on Sunday night as protests over the country’s stringent COVID restrictions flared for the third day.

    There were also protests in Wuhan, Chengdu, and parts of the capital Beijing late Sunday as COVID restrictions were put in place in an attempt to quell fresh outbreaks.

    The dollar extended gains against the offshore yuan, rising 0.74%, and the focus shifts to the opening of China’s markets later in the Asian morning.

    The COVID rules and resulting protests are creating fears the economic hit for China will be greater than expected.

    “A growing list of cities, including those with large populations, have imposed strong restrictions on movement because of a surge in infections, there will inevitably be a negative impact on economic activity from the restrictions on movement,” CBA analysts said on Monday.

    “Even if China is on a path to eventually move away from its zero-COVID approach, the low level of vaccination among the elderly means the exit is likely to be slow and possibly disorderly. The economic impacts are unlikely to be small.”

    China’s case numbers have hit record highs, with nearly 40,000 new infections on Saturday.

    Fears about Chinese economic growth also hit commodities in Asia trade.

    S&P 500 and Nasdaq futures both fell, pointing to possible declines in Wall Street later in the day.

    US crude CLc1 dipped 0.25% to $76.08 a barrel. Brent crude LCOc1 fell 0.16 to $83.48 per barrel.

    Both benchmarks slid to 10-month lows last week and declined for a third consecutive week

    “Mobility data in China is showing the impact of a resurgence in COVID-19 cases,” ANZ analysts wrote in a research note Monday. “This remains a headwind for oil demand that, combined with weakness in the US dollar, is creating a negative backdrop for oil prices.”

    Yields on benchmark 10-year Treasury notes rose to 3.6905% from its US close of 3.702% on Friday. The two-year yield, which tracks traders’ expectations of Fed fund rates, touched 4.467% compared with a US close of 4.479%.

    The dollar rose 0.22% against the yen to 139.4 JPY. It remains well off its high this year of 151.94 on Oct. 21.

    The euro was down 0.2% on the day at $1.0371, having gained 4.94% in a month, while the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up at 106.3.

    In the United States, a speech by Federal Reserve Chair Jerome Powell in Washington on Wednesday to the Brookings Institute on the economic outlook and the labour market will be closely watched by investors.

    Gold was slightly lower. Spot gold was traded at $1750.49 per ounce.

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  • Gold prices flat; set for small weekly gain on hopes of dovish Fed

    Gold prices flat; set for small weekly gain on hopes of dovish Fed

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    Gold prices were flat on Friday, but they were set for a small weekly gain buoyed by the dollar’s overall retreat on a perceived dovish tilt to the US Federal Reserve’s interest rate hike strategy.

    FUNDAMENTALS

    * Spot gold was little changed at $1,753.47 per ounce by 0016 GMT. US gold futures rose 0.5% to $1,753.30.

    * A “substantial majority” of Fed policymakers agreed it would “likely soon be appropriate” to slow the pace of interest rate hikes, the readout of the Nov. 1-2 meeting showed on Wednesday.

    * This put the dollar on course for a weekly decline, making gold cheaper for overseas buyers.

    * The Fed’s signalling of a slowdown in the pace of rate hikes takes the pressure off global peers to keep on raising rates and offers relief to emerging markets, which have suffered their biggest rout in over a decade this year.

    * Lower rates tend to lift the appeal for bullion in comparison with other interest-bearing assets.

    * Lebanon’s central bank has completed an audit of its gold reserves at the request of the International Monetary Fund that found the amount of gold in its vaults was identical to the amounts mentioned in its balance sheets, a bank statement said.

    * Ghana’s government is working on a new policy to buy oil products with gold rather than US dollar reserves, Vice-President Mahamudu Bawumia said on Facebook on Thursday, in a bid to tackle dwindling foreign currency reserves.

    * Spot silver eased 0.3% to $21.45, platinum fell 0.1% to $986.78, while palladium was little changed at $1,881.97.

    * Market activity was relatively muted by the US Thanksgiving holiday.

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  • Dhanteras kickstarts on positive note, jewellers eye up to 20% growth in sale

    Dhanteras kickstarts on positive note, jewellers eye up to 20% growth in sale

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    Two-day pre-Diwali Dhanteras buying of gold and silver began on a positive note on Saturday with some big jewellers and an industry body anticipating a further pickup in demand by Sunday and up to 20 per cent higher sales than the last year. High gold prices have not deterred consumers from buying on Dhanteras,  which is considered the most auspicious day in the Hindu calendar for buying items ranging from precious metals to utensils, to other valuables. 

    On Saturday, gold prices were ruling at Rs 50,139 per 10 grams, excluding taxes, in the national capital, much higher than Rs 47,644 per 10 grams on Dhanteras day in 2021. Normally, 20-30 tonnes of gold is sold on a Dhanteras day. “As this year Dhanteras is spread over the weekend, we expect the momentum to increase towards evening and tomorrow,” All India Gem And Jewellery Domestic Council Chairman Ashish Pethe told PTI. 

    The market response has been good on the first day of Dhanteras and is likely to continue on Sunday as well, he added. Asked about expected growth, Pethe said: “In terms of value it is expected to be 5-10 per cent more than last year as the gold prices are 5 per cent more than 2021 Dhanteras. However, in terms of volume it is likely to be at par with the last year,” he said. 

    World Gold Council Regional CEO, India, Somasundaram PR said the rural demand will hold the key to whether the sales beat last year’s Dhanteras and wedding season figures. “The current year does not have the benefit of a pent-up demand and higher savings caused by lock-down that assisted last year’s season to post a record demand,” he said. 

    In addition, wallet squeeze due to inflation, hike in customs duty and depreciation in INR have all neutralised the impact of the drop in global price, leaving gold prices hovering around Rs 50,000 per 10 grams in India, Somasundaram said. Among Jewellers, Kalyan Jewellers Executive Director Ramesh Kalyanaraman said: “On the back of strong pre-booking numbers, we are expecting good customer footfall across our showrooms, especially in the non-South markets.” 

    The Shubh Muhurat begins this evening and we are gearing up for longer business hours, in lieu of that, he added. So far, the majority of our customers have opted for lightweight token purchases such as mangalsutra, bracelets, chains, etc. apart from gold coins. In line with the upcoming wedding season, we are also receiving good response for heavier designs from our wedding collection,” Kalyanaraman said. 

    Overall, he expects that Dhanteras spread over a weekend will result in positive consumer sentiment. Kolkata-based Nemichand Bamalwa and Sons Kolkata Founder partner Bachhraj Bamalwa said the response has been positive so far. The footfalls at four of our showrooms are very good so far and people are buying gold and silver coins when compared to jewellery. “We expect 15-20 per cent increase in volume of sales this time compared to last Dhanteras,” he said. 

    In Maharashtra, PNG Jewellers Chairman and Managing Director Saurabh Gadgil said the footfalls have been quite good since morning as people are coming in to either pick up their pre-booked jewellery or to buy gold and silver coins. “Overall we expect a good Dhanteras this weekend,” he added. 

    According to the Confederation of All India Traders (CAIT), around Rs 40,000 crore of business is expected to be generated on this Dhanteras, which is spread over the weekend, on the back of positive consumer sentiment. Delhi-based Khanna Gems Chairman Pankaj Khanna said, “We are seeing higher sales in both the offline and online markets. ….The offline sales saw a  20 per cent increase while the online sales grew 15 per cent as compared to last year.” 
    The overall gold sales is expected to see a 25 per cent increase this time, he added. Senco Gold and Diamonds Managing Director and CEO Suvankar Sen said that there has been a lot of positivity since Friday. “Moreover, as this year Dhanteras falls on a weekend, we expect it will be very good. Footfalls are steady since morning and are mostly for the pre-booked orders,” he noted. 

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  • Is the gold you are buying 99.9% or 99.99% pure? 

    Is the gold you are buying 99.9% or 99.99% pure? 

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    While buying gold coins or bars for investment purposes we often only compare prices without paying heed to the purity of the yellow metal. This could be a mistake as purity plays an important role and could be the one of the main reasons for variation in prices. 

    “The buyer should only invest in the purest quality gold available to them, as the additives such as copper or silver corrode over time, which harms your investment. For jewellery, in any case, the purity is 18K or 22K as lower-purity gold is harder and more durable. However, in coins and bars the highest level of gold purity is 99.99% while the market standard is 99.5% or 99.9%,” says Gaurav Mathur, Founder & MD, SafeGold, a homegrown digital currency platform.

    Millesimal Fineness, a system denoting the purity of gold, measures the purity by parts per thousand or the percentage of gold, instead of karats. Under this, 999 means that your 24K gold is 99.90% pure and other metal constitutes only 0.1%. Similarly, 999.9 means your gold is 99.99% pure, which means only 0.01% is other metal. Before buying, it is always better to ask your jeweller, bank, or digital platform about the purity of gold. For example, in the case of MMTC-PAMP and SafeGold gold products the purity is 99.99%. Usually, jewelleries come in different purity levels ranging from 14K, 18K, 22 K which indicate a fractional measure of purity for gold alloys.

    “Our entire communication with the customer is that not only are you getting the purest goal, but also the only ones with a four-nine purity, which basically means 99.99 per cent,” says Vikas Singh, MD and CEO of MMTC-PAMP, a joint venture between Switzerland-based bullion brand, PAMP SA, and MMTC Ltd, a Government of India undertaking.

    However, purity does not hold much relevance while purchasing digital gold online. It only matters when you ask for delivery of your gold.  “What matters more is the reliability of the digital gold provider and if they have a robust structure of independent checks and balances to ensure the safety of your gold,” says Mathur.

    Does the highest purity come with an additional cost? The expert says that there is no additional cost for higher purity. Just check the provider’s delivery options to ensure that 99.99% of gold coins are available for delivery. “To clarify, the rate per gram of pure gold is the same for 995 or 999.9 purity. The headline rate of gold will be higher in cases of higher purities. This is because the rate has a direct relation with the additional grams of pure gold.  For example, if the rate for 995 is Rs 5000/gm, the rate for 999.9 will be 5000 x 999.9/995 = Rs. 5024.62/ gm,” says Mathur.

    Also read: Is it the right time to buy gold? MMTC-PAMP CEO reveals

    Also read: This is how millennials buy gold in India 

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