Video

Watch | Why Are Gold Prices Surging? Should You Invest In It?

Mitali Mukherjee explains that the biggest reason for this surge though is gold’s perception as a “safe haven”.

In 2020 – after a gap of over 9 years, gold hit the psychological mark of Rs 50,000 for 10 grams. But it isn’t a one off for this precious metal. In 2019, gold prices rose by 25% on MCX, the year before that it was a more modest 6%. But COVID-19 has changed everything.

In this video, Mitali Mukherjee explains that the biggest reason for this surge though is gold’s perception as a “safe haven”. The qualities attached to this include a guaranteed return, relatively stable prices and the ability to go against the trend. In an environment such as the one we have going today, the COVID-19 pandemic, huge economic uncertainty, volatility in other investment options like stock markets and real estate, gold, a safe haven, sees it’s prices rise when other investments suffer extreme losses.