02/12/2024
Gold Shines Bright in Q3 2024: A Record-Breaking Performance.
The third quarter of 2024 marked a golden era for investors, with the LBMA (PM) gold price hitting successive record highs. Averaging ₹2,06,000 per 10 grams, the gold price surged by an impressive 28% year-on-year (y/y), reflecting its growing appeal amidst global economic and geopolitical uncertainties.
Key Highlights for Indian Investors:
Soaring Investment Demand
Over-the-counter (OTC) gold investments almost doubled, reaching 137 tonnes (t) globally. This marks the seventh consecutive quarter of positive OTC flows, highlighting the increasing preference for gold as a secure and stable asset.
Record Gold Supply
Global gold supply hit a new high of 1,313 tonnes, a 5% increase y/y. Contributing to this growth were:
Mine production: Up 6% y/y, setting a quarterly record.
Recycled gold volumes: Rose by 11% y/y, though India continues to see more selective recycling, as widespread distress selling has not been observed.
Driving Factors for Gold’s Rally
Several factors have been fueling gold’s ascent:
Falling interest rates globally.
Geopolitical uncertainties, including tensions in global markets.
Increased demand for portfolio diversification.
Momentum buying as gold's strong performance attracts attention.
Outlook for 2024
Experts predict that professional investments, combined with robust bar and coin demand, will continue to support gold prices. While consumer demand in India has slowed slightly due to high prices, the overall trend remains positive. Central bank buying is expected to decelerate, but its long-term support for gold remains intact.
Why Gold Still Matters for Indians
For Indian investors, gold has always been more than just an asset—it's a tradition. With prices surging, it's an ideal time to evaluate your portfolio. Gold offers a hedge against inflation, currency fluctuations, and market volatility. Whether you’re considering buying coins, bars, or even redeeming your pledged gold, the current market scenario could work in your favor.
Gold continues to prove that it is not just a commodity but a timeless treasure, providing stability and growth in uncertain times.
What’s your take? Will you capitalize on gold’s performance this year? Let us know in the comments!
Note: Prices are indicative and based on the prevailing exchange rate of ₹83/US$. Always consult financial advisors before making investment decisions.
-Cash