Gold Price History in India: A Journey through Time
Understand the history of gold prices in India which provides insight into the economic, social, and cultural context of the country.
Gold, a brilliant and precious metal, has enjoyed great value and importance in India for centuries. The metal symbolizes wealth and prosperity. Gold has been a part of Indian culture since its use in traditional jewellry and religious ceremonies. Understanding the history of gold prices in India provides insight into the economic, social, and cultural context of the country.
Early golden days in India
Gold in India dates back to the Indus Valley Civilization. This is one of the earliest urban civilizations in the world. Archaeological evidence suggests that gold was used for ornaments and trade. Gold was highly prized for its purity, and the metal was often used as currency.
Average annual price of gold (24 karat per 10 grams) from 1964 to 2023
| Years | Price (24 karat per 10 grams) |
|---|---|
| 1964 | Rs.63.25 |
| 1965 | Rs.71.75 |
| 1966 | Rs.83.75 |
| 1967 | Rs.102.50 |
| 1968 | Rs.162.00 |
| 1969 | Rs.176.00 |
| 1970 | Rs.184.00 |
| 1971 | Rs.193.00 |
| 1972 | Rs.202.00 |
| 1973 | Rs.278.50 |
| 1974 | Rs.506.00 |
| 1975 | Rs.540.00 |
| 1976 | Rs.432.00 |
| 1977 | Rs.486.00 |
| 1978 | Rs.685.00 |
| 1979 | Rs.937.00 |
| 1980 | Rs.1,330.00 |
| 1981 | Rs.1670.00 |
| 1982 | Rs.1,645.00 |
| 1983 | Rs.1,800.00 |
| 1984 | Rs.1,970.00 |
| 1985 | Rs.2,130.00 |
| 1986 | Rs.2,140.00 |
| 1987 | Rs.2,570.00 |
| 1988 | Rs.3,130.00 |
| 1989 | Rs.3,140.00 |
| 1990 | Rs.3,200.00 |
| 1991 | Rs.3,466.00 |
| 1992 | Rs.4,334.00 |
| 1993 | Rs.4,140.00 |
| 1994 | Rs.4,598.00 |
| 1995 | Rs.4,680.00 |
| 1996 | Rs.5,160.00 |
| 1997 | Rs.4,725.00 |
| 1998 | Rs.4,045.00 |
| 1999 | Rs.4,234.00 |
| 2000 | Rs.4,400.00 |
| 2001 | Rs.4,300.00 |
| 2002 | Rs.4,990.00 |
| 2003 | Rs.5,600.00 |
| 2004 | Rs.5,850.00 |
| 2005 | Rs.7,000.00 |
| 2006 | Rs.8490.00 |
| 2007 | Rs.10,800.00 |
| 2008 | Rs.12,500.00 |
| 2009 | Rs.14,500.00 |
| 2010 | Rs.18,500.00 |
| 2011 | Rs.26,400.00 |
| 2012 | Rs.31,050.00 |
| 2013 | Rs.29,600.00 |
| 2014 | Rs.28,006.50 |
| 2015 | Rs.26,343.50 |
| 2016 | Rs.28,623.50 |
| 2017 | Rs.29,667.50 |
| 2018 | Rs.31,438.00 |
| 2019 | Rs.35,220.00 |
| 2020 | Rs.48,651.00 |
| 2021 | Rs.48,720.00 |
| 2022 | Rs.52,670.00 |
| 2023 | Rs.58,385.00 |
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Apply NowGold price volatility in India
The price of gold fluctuates constantly, influenced by a combination of domestic and global factors. These factors include:
Supply and demand:
The availability of gold plays a crucial role when it comes to determining the price of gold. When gold is scarce, its price rises, while an increase in its supply can cause its price to fall.
Inflation:
Inflation, which is a constant rise in prices, also affects the price of gold. As currency prices fall, gold, considered a store of value, becomes more attractive, driving up its value.
International Markets:
The global rise in gold prices also impacts the Indian market. An increase in the international price of gold has a significant impact on domestic prices.
Government policies:
Government policies such as import duties and taxes can also affect gold prices in India.
Gold price trends in India over the decades
The history of gold prices in India can be divided into distinct periods, each marked by important events and events:
Pre-independence (1947 and before):
Gold prices were relatively high during this period, with minor fluctuations. Gold was widely used as currency and reserve money.
Post-independence period (after 1947):
Since independence, Indian gold prices have undergone significant fluctuations. The Indo-Chinese War of 1962 and the financial crisis of 1971 led to a sharp rise in the price of gold.
Liberalization period (1991 onwards):
Economic liberalization in the early 1990s opened up the gold market in India. This increased competition and transparency, creating a more stable environment for gold prices.
The recent rise in gold prices in India
In recent years, gold prices have risen steadily, reflecting global trends. The COVID-19 pandemic and ongoing geopolitical tensions have increased gold demand for security assets.
Impact of gold price fluctuations on the Indian economy
Volatility in the price of gold has a significant impact on the Indian economy in several ways:
Investment:
Gold is a popular investment in India. An increase in the price of gold can increase the supply of gold, which can have a positive effect on the economy.
Jewellery Industry:
The Jewellery industry is a major employer in India. Fluctuations in the price of gold can affect the demand for jewelry, affecting business and economic activity.
Savings:
Many Indian households tend to consider gold as a safe deposit. A rise in the gold prices can increase the value of household savings.
What to remember when buying gold?
When buying gold in India, there are essential considerations to remember. First and foremost, prioritize purchasing hallmarked gold from reputable and authentic jewellers to ensure its purity and authenticity.
Additionally, stay informed about the market's fluctuations before investing in gold. Opt for buying gold during market downturns, as this can be an opportune moment for acquisition. Subsequently, when the gold prices rise, you can sell your gold for a profit. It's also advisable to stay updated on the current silver prices in India for a well-rounded understanding of the precious metals market.
Conclusion
The history of gold prices in India is an interesting picture of the country’s economic, social, and cultural development. Individuals, entrepreneurs, and policymakers need to understand the factors affecting gold prices and their economic impact. As India grows and develops, gold is likely to become an important asset in the lives of its citizens and an important part of the national economy.
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