If you have been wondering what is going on with the gold price in India then you are thinking like the rest of us. Why would the price of gold in India really matter anyhow?
India is the world’s largest consumer of gold which means it’s the country to watch with the market fluctuations of today. Gold prices fell this morning at open, and they fell over 1% as a result of the Fed disappointing when it came to making positive stimulus in the economy.
I want to share with you what changes are happening today and why India plays a part in it.
Long Term Borrowing Costs and the Gold Price in India
So the most recent claim from the Fed is that they would bring down the long term borrowing costs for loans and anything else that was related to the cost of borrowing money.
Stimulating growth has also been a hot point, but is any stimulus really happening as a result of any decisions made by the U.S. government thus far?
Well, one thing I can tell you it doesn’t include is another dose of quantitative easing. The reality is that the American people don’t really get why the QE is bad, so those who frown on it NOT happening are the people that really need a lesson in finances!
What does printing more money do when there isn’t any real money or backing behind it? It causes inflation, and that means our prices are going up faster and higher than we can handle.
Regardless of what is good long-term for our country, there is plenty of disappointment as the price of gold goes up, and the US dollar goes down.
So, how does this affect the gold price in India?
Interesting you should ask, because although India is a much larger consumer of gold, the price of gold held up as the value of the Rupee fell. Does that speak volumes about the economy in India?
Gold Price in India and the Global Economy
Now that there is more concern drawn to the global economy and the gold price of India, what will happen next?
Gold is no doubt attractive when it’s priced at over $1600 per ounce right? This is why so many have been selling off their gold jewelry and precious items in order to earn cash. However, will the market stay steady for this to be the case?
Not from a global perspective; keep in mind that the Rupee is hitting a record low, which says a lot about a country who consumes gold to the hilt. There is no doubt that gold will remain high, but overall, the average they see will float right around $1500 per ounce or just a bit over, depending on what happens next.
Silver was down over 2%, and Platinum fell not quite a full percentage point, so what next?
Gold Price in India Doesn’t Matter When You Should be Buying Gold Anyhow
So, whether or not we get worried about what world is doing on their currency, what matters most is what gold is doing.
We already know that everyone’s currency is struggling with values falling, but this is why the price of gold has remained so high.
I can tell you that having the physical gold in your hand is the best thing you can do, because you can prove you have it, and you can trade it if needed. Oh, and the best thing about gold is that it’s universal!
No matter where you go, gold will spend the same!
If you want to learn more about gold, and why the gold price in India won’t ultimately matter, then CLICK HERE now!
Tags: Gold Price In India