HOW THE BULGE IN PANDEMIC BOOSTED GOLD AND SILVER PRICES !!

As we all know Gold prices is on a fast rush and also it is the only  glittering prospect for many Indians and nri's. recently gold prices hit Rs. 52,915 on a very staedy pace. Analysts believe the gold prices will climb even higher, to a range of 60,000 rupees over the next year or so.

The price is for 10 grams of 24 karat gold in Amritsr markets. Prices in India, the world's second biggest consumer of gold after China, had crossed the Rs 51,000 milestone earlier in the month.

so after the 2018 economy slowdown the prices of gold are however raised but in this pandemic situation where all expected that the prices will suffer but the opposite happened and the prices went u like a rocket. As the rise is 27 per cent in just the first few months of this year compared to 24 per cent for the whole of 2019. And if you take the lockdown period, the increase in value of precious metals like gold and silver have been as high as 45 per cent. 

talking about global indices  gold prices have been on an upward momentum like anything, rising more than 20 per cent in 2020, the highest in the last 10 years.  the international price of gold  hit Rs 1.51 lakh per troy ounce (one troy ounce is slightly over 32 grams), very close to the all-time highest price the yellow metal had ever garnered (1.43 lakh in 2011). 

Reason of the prices getting this higher is very siple as the weaking of the interest rates due to fall in the limit of dollar prices as compared to indian rupres(INR). also because people find gold safer then liquid cash.

The global Covid-19 pandemic has incresed the number of safe haven investment demand for gold, offsetting marked weakness in consumer-focused sectors of the market.

Just three years ago, in November 2017, gold prices in India were around Rs 31,000. Then, they started raising up, aided first by fears of a US-Iran war, and then over the double jeopardy of the trade war between the US and China sparking fears of a global fallout, as much as India's own faltering economic growth. i would say for many Indians, it may be a very nice spot, considering how gold has been India's favourite investment instrument from a long period of time.  

Yet, in global economics, the value of gold is as a safe asset, a commodity that is generally stable and does not lose its value, even as other commodities like money does in troubled times.

As all the analysts believe that until the global economy recover from the aftermath of Covid-19, this rally should likely continue for longer period of time. A trend that would be boosted as many governments print (or are thinking of printing) extra currency, lower interest rates or issue bonds to tide over the present economic deceleration. Extra currency in circulation and lower interest rates mean the money component in your investment portfolio reduces in value—while gold's value increa