2022 Independence Day: How gold prices have surged since 1947
When inflation is high, gold prices continue to soar.
PremiumOne of the biggest gold importers in the world is India. The value of gold at home fluctuates in the same way as prices do in the international market. Inflation is hedged with gold. When inflation is high, gold prices continue to soar.
In 1942, when the Quit India Movement was at its height, 10 grams of gold cost Rs. 44. Within the following five years, in 1947, this price had doubled. Gold has grown in value as a valuable asset over time. Gold is one of the most prestigious investment options and can outperform inflation.
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In 1947, the cost of 10 kilos of gold was less than the cost of an airline ticket from Delhi to Mumbai. According to information from the Indian Post Gold Coin Services, it was Rs88.62 at that time.
Even five years ago, this was double what it was now. The same amount of gold cost Rs44 during the height of the Quit India campaign in 1942. After seven decades of independence, the price of 10 grams of gold has increased more than 300 times, costing ₹28,500 (as of end-July), almost as much as a round-trip ticket to London in economy class.
The cost of gold had begun to rise as India gained its independence. The price of 10 grams of gold was Rs. 88. Gold provided investors with a return of roughly 12% between 1950 and 1960.
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In 1970, the average price of gold reached ₹184, ₹1,330 in 1980 and ₹3,200 in 1990. Between 2000 to 2010, the price of gold reached from ₹4,400 to ₹18,500. On August 14, gold price in New Delhi declined by ₹90 to ₹52,915 per 10 grams, according to HDFC Securities. The precious metal had closed at ₹53,005 per 10 grams in the previous trade. In the international market, both gold was trading flat at $1,789 per ounce.
(With agency inputs)
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