Historical Trends of Gold Rates in India

Gold. That shiny metal we all secretly admire. Whether it’s a wedding, festival, or just any random occasion, gold has always been an important part of Indian culture. But have you ever wondered how the gold price history in India has changed over time? If not, read on to learn the history of gold prices in India over the years.

Gold Rate History in India: The Twists and Turns

• The Good Old Days: Before 2000

Before the start of the millennium, gold prices were barely what they are now. It may seem surprising, but gold rates were ₹63.25 per 10 grams in 1964. It reached ₹1330 per 10 grams in 1980 and climbed to ₹4400 per 10 grams in 2000 .

• The Slow and Steady Climb: Early 2000

At the turn of the new millennium and in the few years that followed, gold prices started to decline. From ₹4400 per 10 grams in 2000, they jumped to ₹7638 in 2005 , and they further climbed to ₹20,728 in 2010.

• The Big Boom: 2010 to 2020

This was the decade when gold really flexed its muscles. From ₹20,728 in 2010, it jumped to ₹50,151 in 2020 . The metal yielded over 1000% returns to investors over the 20-year period from 2000 to 2020.

• Post 2020: The New Normal

The COVID-19 pandemic sent gold prices soaring to new heights. People rushed to buy gold as a ‘safe-haven’ asset, pushing prices to record highs. Since then, rates have fluctuated but mostly stayed above the ₹50,000 mark. As of February 28, gold prices touched ₹85,060 per 10 grams.

Gold Rates Over the Years: Factors Driving Prices

Gold rates over the years have been influenced by many things. Here are some of the biggest factors:

• Inflation: When inflation rises, so does gold. Why? Because people see gold as a safer investment than cash. When the value of money decreases, investors turn to gold to preserve their wealth. This increased demand drives up prices.

• Global Events: Wars, economic crises or even a tweet from a billionaire can impact gold prices! For example, during financial recessions, investors look for stable assets like gold. Similarly, geopolitical tensions can create uncertainty, leading to a surge in gold investments.

• Central Bank Policies: The RBI and other global central banks hold gold reserves. When central banks increase their gold reserves, it signals strong demand, leading to price hikes. Interest rate policies also play a role. When interest rates are low, gold becomes an attractive investment.

Gold Returns in Last 10 Years

Gold returns in the last 10 years have been impressive. It recorded an annual growth of 26% , primarily driven by central bank purchases, geopolitical tensions and accommodative monetary policies by the RBI.

In Conclusion

Gold has had quite the journey in India. Prices have fluctuated dramatically from being quite cheap decades ago to hitting jaw-dropping prices today. If you’re thinking of investing in gold, make sure to hold it for a long time.