Gold Could Reach Rs 1.75 Lk/10 Gms by 2040, Says WGC


Gold Could Reach Rs 1.75 Lk/10 Gms by 2040, Says WGC

World Gold Council projects slower global gold returns, says likely to average 5% annually over the next 15 years - from 2025 to 2040; in comparison, over the last 52 years investors earned an average annual return of 8%

 
GOLD

Udaipur, January 23, 2025 – The World Gold Council (WGC) has in its report said that the rise in the pace of gold will slow down in the coming years. Over the next 15 years - from 2025 to 2040 - global gold returns are expected to average 5% annually. In comparison, over the last 52 years - between 1971 and 2023 - investors earned an average annual return of 8%.

The report further elaborates that the slowdown in gold’s price growth is owing to various global economic factors, including changes in interest rates, inflation expectations and shifts in investor behaviour. Despite the slower growth, the WGC still sees gold as a valuable asset for diversification in investment portfolios, especially in the context of uncertain market conditions.

In terms of price projections, the WGC estimates that by 2040, gold prices could reach approximately Rs 1.75 lakh per 10 grams. This would represent a substantial increase from current prices, but at a slower growth rate compared to the past few decades.

These projections suggest that while gold will continue to be a significant store of value, the dramatic price increases seen in recent years may not continue at the same pace, requiring investors to adjust their expectations accordingly.

Yesterday, January 22, gold prices set a new record in Jaipur with price of pure gold reaching a record Rs 82,200 (including GST) per 10 grams. Jewellery-grade gold also hit its highest level of Rs 77,000.

Previously, on October 30, 2024, gold prices had reached a record of Rs 82,000 per 10 grams. This month, the price of gold in Jaipur has increased by about 5%, or Rs 3,900.

Indian gold ETF momentum slowed down in December, but 2024 saw record annual inflows. Meanwhile, the Reserve Bank of India (RBI) accumulated 72.6t of gold in 2024, ending the year with 876t in reserves.

With Media Inputs

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