Why Gold and Silver Rate is increase, When will they come down? Know details
Gold and Silver Price Increase: The cause of increasing geopolitical tension and economic uncertainty globally, the gold price has increased in the past few months, according to the government. As a result, investors are rapidly shifting towards safer investment options. Minister of State for Finance Pankaj Chaudhary stated in a written reply to the Lok Sabha that the prices of gold and silver in India primarily depend on the rates determined in the international market, the exchange rate of the rupee against the US dollar, and the taxes and duties applicable in the country.
The minister also stated that although the prices of gold and silver have increased this year, the impact is not uniform across all states and social classes, as the social, cultural, and economic significance of these metals varies in different regions and communities. Gold and silver are not merely consumer goods but also important investment avenues and are considered safe assets during uncertain times, he said.
The government explains the reason: The increase in prices enhances the value of assets for families who already possess gold and silver, thus having a positive impact on household wealth. The prices of precious metals are entirely market-driven, and the government does not play any direct role in their price determination, he clarified.
Referring to the data, the minister stated that, in the current financial year, up to September, India imported approximately $26.51 billion worth of gold and $3.21 billion worth of silver, which reflects the strong domestic demand for these metals.
