Both gold and silver prices are reported to be at all time highs in India according to an article by DEBIPRASAD NAYAK and carried in the Wall Street Journal recently.
MUMBAI – Gold and silver spot prices in Mumbai, India's largest bullion market, rose to all-time highs Thursday, as investment demand remained firm and turmoil in the Middle East continued.
Pure spot gold hit an all-time high of 21,065 rupees ($467) per 10 grams, while silver hit a new high of 50,515 rupees a kilogram, the Bombay Bullion Association said.
Spot gold hit an earlier high of 20,975 rupees per 10 grams in early December, while silver breached its previous record of 49,955 rupees per kilogram hit Monday.
Demand for gold is likely to remain firm in India in the coming days as rural consumers will have more disposable income due to winter-sown crop harvesting in March, said Angel Commodities in a note.
India's food grain production is expected to rise 7.2% to 234 million metric tons this crop year through June due to higher planting.
In India, the world's largest bullion consumer and importer, most of the farmers aren't exposed to other forms of asset classes and investment in gold is the only option available to them, Angel Commodities said.
The current wedding season in India is also bullish for the yellow metal, the brokerage added.
As we see it, it all bodes well for the continuation of demand out of India and pressure on gold and silver prices over the short term.
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