A Glimpse at Gold Price History in India
by Francis Alukkas | 21 September 2021 | GOLD PRICE
India is one of the leading consumers of gold in the world. Indians consider gold as a safe investment and it is one of the most imported commodities in India. The Gold Price History in India has undergone wide fluctuations but the interest in investing in gold never went out of trend in India. Market trends studied by investors show the Gold Price History in India has been on a rise always, with very rare dips.
The Gold Price trend in the last 10 years has been pretty much uphill, Indian currency values falling headlong into the pit. However, the investments in gold have proven to be good enough for Indians despite the poor exchange rates.
Here’s a glimpse of gold price history in India in the past. The chart below shows the average annual price from the year 1999 to 2019.
| Year | Annual Gold Price (24 karat per 10g) |
| 1999 | Rs.4, 234.00 |
| 2000 | Rs.4, 400.00 |
| 2001 | Rs.4, 300.00 |
| 2002 | Rs.4, 990.00 |
| 2003 | Rs.5, 600.00 |
| 2004 | Rs.5, 850.00 |
| 2005 | Rs.7, 000.00 |
| 2006 | Rs.8, 400.00 |
| 2007 | Rs.10, 800.00 |
| 2008 | Rs.12, 500.00 |
| 2009 | Rs.14, 500.00 |
| 2010 | Rs.18, 500.00 |
| 2011 | Rs.26, 400.00 |
| 2012 | Rs.31, 050.00 |
| 2013 | Rs.29, 600.00 |
| 2014 | Rs.28, 006.50 |
| 2015 | Rs.26, 343.50 |
| 2016 | Rs.28, 623.50 |
| 2017 | Rs.29, 667.50 |
| 2018 | Rs.31, 438.00 |
| 2019 | Rs.35, 220.00 |
It is evident from the Gold Rate History in India as seen in the chart above that the cost of gold has had a steep rise over the years. The gold price trend in the last 10 years alone shows the rates have doubled in a span of 7 years since 2009 when the price per 10 gram for 24 karat gold was Rs. 14, 500 to Rs. 28, 623 by 2016. The highest rise in gold prices has happened within the past decade, with gold rates hiking more than double the price at the beginning of the decade.
Certain researches by economists and investors made a gold rate prediction that gold price will have a hike of at least 260% by 2020. This year began with a price of Rs. 38, 090 for 10 grams of 24 karat gold and is continuing to increase.
Why does Gold Price keep on increasing?
Although there are apprehensions that gold rates will hit a plateau or start falling, the current gold rate trends and the Gold Price History in India show the prices will keep rising for a while. Some reasons for the increasing gold rates are:
- Uncertain government or financial markets.
- A safe wealth during economic or geopolitical turmoil.
- Economy is balanced against inflation and subsequent currency devaluation by holding Gold as a hedge. Currency undergoes rapid fluctuations but gold price stays fixed for longer.
- Fear of decline of currency values.
- Declining value of dollars.
- Investors depend on gold to protect their investments when the central banks undergo deficits.
- Decreasing interest rates.
- Large money supply encourages more money loans and reduced interest rates by central banks. This triggers inflation and in turn hikes the gold price.
- Great quantities of gold bought by central banks as reserve causes increased supply of currency and scarcity of gold availability.
- Huge demand for jewellery in China and India and from industrial applications.
- High cost of production encourages miners to sell gold for more money to preserve their profits.
Are you looking for jewellery ornaments, then check: Gold Necklace with Price and Weight Details
Why is investing in gold a good idea?
- All over the world, Gold is considered as a standard value for currencies.
- Gold investments are a great way to balance your portfolio.
- The gold prices increase when the stock exchanges are down.
- Gold is a better safety investment in times of economic uncertainty.
- Gold is well known as a crisis commodity because of its great resilience.
- Gold is a hedge against inflation and devaluation of the currency. The gold prices hike whenever the dollar value drops.
- Gold is an inconspicuous way of endowing financial legacy to the next generation.
If you are interested to know more on investment scheme, check: Gold saving scheme
It is a great idea to be updated and vigilant about gold price history in India and the gold rate trends to earn insight into the future of gold and the potential of making investments in gold. You can design investment plans as per the changing trends. The gold price is multifactorial. The central bank stability and fluctuations, the demand and the supply, the production costs, the reserves, the jewellery industry situation and annual production are all factors in affecting gold prices. With up-to-date knowledge and smart decisions, Gold is undoubtedly the safest investment choice when you begin to save.
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