Gold & Silver Price: The government has clarified that the main reason behind the sharp increase in gold and silver prices in recent months is the increasing geopolitical tension and economic uncertainty at the global level, due to which investors are increasingly turning towards safe investment options. Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha that the prices of gold and silver in India basically depend on the price decided in the international market, the exchange rate of rupee against the US dollar and the taxes and duties applicable in the country.
rise in gold prices
He said that when situations like war, fear of global recession or economic instability increase in the world, investors move away from risky instruments like stock market and invest money in safe assets like gold and silver, due to which their prices rise. Apart from this, central banks and big financial institutions around the world are also purchasing gold in large quantities, due to which the demand has further strengthened.
The minister also said that although the prices of gold and silver have increased in the current year, its impact does not fall equally on all states and all sections, because the social, cultural and economic importance of these metals is different in different areas and communities. He said that gold and silver are not just consumption items but are also an important means of investment and are considered safe assets in uncertain times.
The government gave the reason
The increase in prices increases the value of assets of those families who already have gold and silver, which has a positive impact on household wealth. He also clarified that the prices of precious metals are decided entirely on the basis of the market and the government does not play any direct role in determining their prices.
Referring to the figures, the minister said that till September in the current financial year, India has imported gold worth about $ 26.51 billion and silver worth $ 3.21 billion, which shows the strong domestic demand for these metals.
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