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Gold, Silver Prices Soar Amid Global Tensions, Metal Shortage

Gold and silver prices are surging due to heightened global geopolitical tensions, economic uncertainty, and a physical metal shortage in international markets. Jewellers report that high prices have drastically altered buying patterns, with 80% of the market now running on exchanges of old jewellery for new rather than fresh purchases. Despite a slight correction, the long-term trend is seen as upward, with gold potentially heading towards Rs 2 lakh per 10 grams. The price surge is attributed to global factors beyond India's control, including countries shifting dollar reserves into gold.

Key Points: Gold, Silver Prices Surge on Global Uncertainty, Shortage

  • Gold nears Rs 1.85 lakh/10g
  • Silver touches Rs 4.25 lakh/kg
  • 80% of sales now via exchange
  • Prices driven by global factors, metal shortage
2 min read

Global uncertainty and metal shortage drive gold and silver prices higher; 80% market running on exchange: Jewellers

Gold nears Rs 2 lakh, silver hits Rs 4.25 lakh/kg as geopolitical tensions and a metal shortage drive prices. 80% of market now runs on exchange.

"People are bringing old jewellery or coins and exchanging them for new ornaments. Fresh buying has reduced sharply. - Jeweller"

New Delhi, January 30

Amid heightened global geopolitical tensions and economic uncertainty, jewellers say gold and silver prices continue to surge, driven by strong demand and metal shortages in international markets.

According to market experts, the ongoing shift by several countries from dollar reserves to metal-backed assets has further pushed precious metal prices upward.

A local jeweller said, "There is a clear divide between major global economic blocs -- one pushing a petro-dollar model and the other moving towards a metal-based economy. Many countries have converted their dollar deposits into gold. This has increased the demand, and now even international deliveries are being postponed due to metal shortage."

Jewellers noted that silver recently touched Rs 4.20-4.25 lakh per kg, while gold climbed to nearly Rs 1.85 lakh per 10 grams.

On Tuesday, prices corrected slightly, with gold hovering around Rs 1.70 lakh, and silver around Rs 3.60 lakh.

However, they maintain that this fluctuation is normal and the long-term trend remains upward. Over the past few years, gold has more than doubled, while silver prices have risen nearly four times.

Despite the sharp rise in rates, domestic demand remains broadly steady. Jewellers say the price surge is purely driven by global factors.

"Whatever geopolitical decisions or economic actions take place globally, their immediate impact is seen on gold and silver. India depends heavily on imports, so price control is not in our hands," a jeweller added.

The high price levels have significantly changed buying patterns. Jewellers report that only 25 per cent of sales now come from new purchases, while 80 per cent of customers opt for an exchange.

"People are bringing old jewellery or coins and exchanging them for new ornaments. Fresh buying has reduced sharply. In wedding purchases too, customers are upgrading old pieces instead of buying entirely new ones," the jeweller said.

With prices ruling high, demand for lightweight jewellery has increased, especially for machine-made designs.

However, jewellers say low-karat pieces such as 9K, 12K, or 14K are difficult to produce in handcrafted wedding jewellery, though feasible in machine-made daily-wear pieces.

Jewellers believe the upward momentum may continue in the coming months. "Looking at global conditions, gold could move towards Rs two lakh per 10 grams, and silver may reach Rs 4.5 to Rs 5 lakh per kg," they estimate.

They add that the current situation indicates continued reliance on precious metals amid global economic instability.

- ANI

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Reader Comments

R
Rohit P
This is exactly why we need to reduce our dependence on imports for everything. Global tensions in West Asia and Europe directly hit our pockets. Gold is not just jewellery, it's a security for middle-class families. Government should think about strategic reserves.
D
David E
Interesting to see the shift from petro-dollar to metal-based economies playing out in real time. The 80% exchange rate is a smart market adaptation. In the West, we'd just stop buying, but in India, gold has deep cultural and economic value. Resilient market.
A
Aditya G
The article correctly points out we have no control over prices. But I respectfully disagree that demand is "steady". In my circle, fresh buying has completely stopped. People are only exchanging old for new during weddings. This will eventually hurt jewellers and karigars.
S
Sneha F
Lightweight machine-made jewellery is the new trend! 💍 It's practical and stylish. My mother's generation would never understand, but with these prices, we have to be smart. Buying a 2-gram pendant feels like a big purchase now. Hope the prices correct a bit soon.
V
Vikram M
Silver at 4.25 lakh per kg is mind-blowing! I bought some silver coins as an investment 5 years back, and they have quadrupled. This metal shortage story shows how global finance is changing. Maybe it's time to hold physical assets, not just digital numbers in a bank.

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