Indians buy gold jewellery for two reasons – fashion and investment value. As prices are soaring high, it is the right time to invest in gold. In 2020, India witnessed around a 40% increase in the gold price. On 8th August 2020, the price of spot gold touched $2,072.50 an ounce. As mentioned, prices are not just the driving force for Indians in gold, style and fashion trends matter too.
In terms of style, there’s plenty to choose from. From ethnic earrings like the Ira Layered Chand Bali and the Dalisa Dangler Earrings for weddings and festivals to contemporary necklaces like The Sheen Necklace for cocktail parties, gold jewellery design is constantly evolving to meet consumer demand. When it comes to investments, many people consider gold the safest investment as the value is bound to increase in the long run. Of late, while the interest rate for other investments has dropped, gold prices have risen to record levels.
Why Are Gold Jewellery Prices Increasing?
There are many factors responsible for the upward trend in gold prices. Demand and supply, of course, play major roles. With the uncertainty of FD and mutual fund interest rates, people have turned back to investing in Indian gold jewellery. However, the amount of gold available in the market is limited and hence as demand increases, so does the price. It is also interesting to note that gold prices have always had an inverse relationship with bank interest rates. You may not realize it but the price of Indian jewellery like the B Iconic Convertible Charm Bracelet is also influenced by international factors like currency fluctuation and an increase in international gold prices.
To Invest In Gold Or Not
It’s been more than 8 months since the COVID-19 pandemic began and economists believe its effects will take a while to wane. The markets have been impacted badly and low-interest rates may be the reality for months to come. In such a situation, analysts believe the price of gold will continue to increase. Even after the vaccine is introduced, investors may prefer to take the safer route to manage their money and prioritize gold over other investments.
Buying Gold Today
When you talk of gold prices in the market, the reference is usually to 24 and 22 karat gold. 24kt gold is rarely used in gold jewellery since the metal is soft and pliable. It is the purest form of gold and typically used only to make gold coins. 22kt gold is usually used to make Indian jewellery without any gemstones. The Gunjan Nimah Gold Jhumka are popular gold jewellery designs in 22kt. If you’re looking at a diamond and other gemstone studded jewellery styles like the Tannu Diamond Nose Pin or the Fold Foretold, you’re looking at 18kt gold. The price of 18kt gold is much lower than that of 22kt gold. Today, there are many 14kt gold designs available in a gold jewellery design finder. Earrings like the Cosmic Gold Stud Earrings and necklaces like the Forever in Love bar Necklace in 18kt and 22 Kt gold are ideal for everyday wear. However, 14kt gold is hard to resell and hence don’t consider this an investment.
Our Two Cents
If gold matches your fashion preferences, investment plans and risk tolerance, you can shop for gold coins and myriad jewellery styles online. All you need is a gold jewellery design finder app like Finaura that presents Indian gold jewellery from some of India’s top jewellers. The pieces are all hallmarked and when you buy gold from Finaura, you can rest assured that your investment is safe.
Finaura is a gold jewellery design finder that helps you to find the best gold jewellery designs from the most trusted Indian gold jewellers. You can download the Finaura App from Google Playstore.
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