Jewellery Buyers Need Not Fear Price Fall In Future
The Art of Jewellery|September 2020
Prithviraj Kothari, Managing Director of Riddhi Siddhi Bullions Limited (RSBL), a leading Indian bullion conglomerate, expressed his views on gold and silver.

Q: Why are Gold and Silver prices on rise, both internationally and domestically?

A: History is repeating itself. Gold is testing new highs at it did at the time of the Global Financial Crisis and thus proving its role as a defensive tool.

Governments are running big deficits and central banks are printing more money. It is generating inflation which is helping to drive the bullion price higher. The Federal Reserve in the US is not likely to normalize rates or end quantitative easing or shrink its balance sheet. Inflation is likely to grow.

Q: Many believe it is not sensible to buy at this high level. Your take?

A: Going long on gold is the second most preferred strategy of global fund managers. A high 23 per cent of managers surveyed in the BofA Securities August Fund Manager Survey (FMS) said they were bullish on the yellow metal. Surprisingly, 31 per cent of fund managers surveyed by BofA Securities believe gold is overvalued.

Although correction in the short-run would be totally normal, or even desirable, the underlying bull market should continue, at least for a while, i.e., until the dominant economic narrative changes, which is not yet happening.

Q: It is argued that Gold is a non-productive investment and generates no income in the form of interest, dividend etc. Gold prices move only when times are uncertain. Do you agree?

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM THE ART OF JEWELLERYView All

Outlook on Driving Diamond Desirability with NDC CEO, David Kellie

"Our confidence in the new campaign combined with the results we've had to date means that our traffic and engagement forecasts will be 40-50 times higher than in our recent history". David Kellie, CEO, NDC

3 mins read
The Art of Jewellery
September 2020

Saroja Yeramill Meet The Entrepreneur Who Raised Rs. 165 Crores In Just 3 Years!

Who said a big fat Indian wedding only require heavy jewellery? Some families prefer going for light and affordable jewellery for their special day, and thankfully, this woman has made it possible for them to pick something intricate for the best day of their life. Meet Saroja Yeramilli, the CEO of Melorra.

1 min read
The Art of Jewellery
September 2020

Working Conditions of Karigars in the Gold Jewellery Manufacturing Industry: Niti Aayog Report

A study by NITI AAYOG (2018) on gem and jewellery industry estimated that the industry may generate a whooping 10 million employment opportunities by 2022.

1 min read
The Art of Jewellery
September 2020

Malabar Gold & Diamonds launches its 1st store in Bihar with a unique virtual inauguration

Malabar Gold & Diamonds, one of the largest gold and diamond retail chains in the country, will inaugurate its first store in Patna in Bihar through a unique virtual store launch event on September 19, 2020.

1 min read
The Art of Jewellery
September 2020

GJEPC's flagship show IIJS takes virtual leap

IIJS Virtual, the digital edition of the GJEPC’s flagship August show is scheduled in October 2020

2 mins read
The Art of Jewellery
September 2020

In the Spotlight with Veronica Favoroso CEO, GemCloud

More businesses rely on the internet to go to market, generate sales and provide customer service.

5 mins read
The Art of Jewellery
September 2020

High gold price boosts opportunities for Thai silver jewellery exports

Thailand is one of the world’s leading suppliers of silver jewellery, using state-of-the-art manufacturing and deft craftsmanship.

1 min read
The Art of Jewellery
September 2020

Forevermark Presents the Tribute™ Collection

- Seasons Change. A Diamond is Forever-

1 min read
The Art of Jewellery
September 2020

Fixing uniform price for gold will be anti-competition

With appetite for the yellow metal substantially reduced because of unemployment, loss of income and financial distress, there is a sharp contraction in physical demand for gold jewellery. As a result of weak demand, even monthly gold imports into the country has dwindled to low numbers in the last six months.

2 mins read
The Art of Jewellery
September 2020

Jewellery Buyers Need Not Fear Price Fall In Future

Prithviraj Kothari, Managing Director of Riddhi Siddhi Bullions Limited (RSBL), a leading Indian bullion conglomerate, expressed his views on gold and silver.

4 mins read
The Art of Jewellery
September 2020