Gold could reach 65000 and Silver could reach 80000 by Diwali know why

Gold-Silver Future Price: After the rise in the price of gold and silver in the past, once again a decline is being seen in both the precious metals. However, gold is still running above the record of August 2020. Experts are predicting a rise in gold and silver in the coming times. This Diwali gold can reach the level of Rs 65000 per 10 grams and silver Rs 80000 per kg. Let us know, according to Divam Sharma, co-founder of Green Portfolio Smallcase, the main reasons for the rise in gold and silver-

rise in inflation and unemployment

Divam Sharma says that the price of gold is likely to go up further due to the inflation rate reaching record levels and the unemployment rate rising. Countries around the world (developed countries too) have seen inflation rising tremendously during the last one year. There are early signs of an increase in the unemployment rate in America, this year the recession in their economy may get worse.

High Sovereign Gold Reserve

During the past year, Russia's US dollar reserves were reduced due to sanctions in view of the Ukraine war. Due to this, the attention of all countries is on this side and all want to reduce the risk on their dollar reserves. Gold gives the perfect re-placement for that. This is the reason why many countries around the world are increasing their gold reserves. This is the reason for increasing demand for gold. China and Russia are hoarding gold fast. It is also rumored that they are coming with their reserve currency.

gold backed currency

Divam Sharma told that the world is moving from dollar backed trade to local currency backed global trade. You can see India started doing business with countries like Sri Lanka and Russia through rupee based trade. Russia is also considering crypto currency to strengthen the value of its currency, which will be backed by gold.

opening of china

China has reopened after a long period of lockdown due to Covid. With the resumption of industrial activity in China, there can be a big boom in silver. Apart from this, the price of other commodities like steel, zinc, aluminum etc. will also be affected in the coming times.

introduction of the petrodollar

In the 1970s, the US came up with the petrodollar concept, where oil is sold in barrels in exchange for USD only. With the latest developments happening on the bilateral trade mechanism with China and Saudi, the US dollar will come under pressure and this will be structural. The weakening of the dollar will make gold stronger.

In the last 10 years, gold has increased by 5.7% CAGR. Investors can keep gold and silver up to 10-15% of their investment portfolio.