Record rise in gold and silver prices: Investors active in the market despite high prices

- Boolean Bits Dinesh Parekh

- As the price of gold crossed the level of 2000 dollars per ounce and the price of silver crossed the level of 23 dollars per ounce in the world market, the import cost in the country increased.

Due to the crisis of the banks in the world market, Fed Chairman Jerome Powell has softened the policy of increasing the interest rate by increasing the interest rate by 25 points. The Fed has said that inflation was to be brought under control this year. Once the interest rate will be hiked this year and then 2024 may be revisited, the possibility of lowering the interest rate cannot be ruled out. It should be noted that even after the Credit Suisse Bank crisis, the Swiss Central Bank increased the interest rate by 50 points.

Aldoro President Jorge Bahr says that falling inflation will boost gold prices and that new catalysts will add gold to higher prices above $2,000 an ounce. Among those catalysts is the prospect that gold, like bitcoin, can be bought via cell phone.

As interest rate hikes continue to punish gold and put the brakes on the price rally, strategist Ernest Hoffman says lithium is becoming more important as people shift their investments to base metals and battery metals instead of precious metals.

Elon Musk puts a big bull on copper as gold miners boost gold after lower-than-expected interest rate hike. The world will need more copper for energy production, and the conflict between Russia and Ukraine also indirectly supports the copper and gold boom.

Gold will rise as American traders try to find safety by keeping their money in gold investments, adding to the worries of financial stress and the dire state of banks. Although oil prices have fallen, they will support gold.

As the central banks of every country are trying to keep their currency stable by buying gold continuously, when there is no room for recession in gold, Switzerland's Société Générale Bank invests 15 percent in gold in its portfolio and concentrates on safety by distinguishing the sound of recession steps and investing in gold.

The Fed's announcement of a 25 basis point interest rate hike lifted Treasury bill yields and weakened the dollar on Wednesday. China is trying to de-dollarize the dollar in the world market by reducing the reserve amount of the dollar and focusing on the purchase of gold, with the support of Russia and other countries, the attraction towards gold has increased and the air of bullishness is filled in gold. Overall there will be a boom in gold.

During the week in the world market, silver has also rallied behind gold and silver has hit a high of 2350 cents per ounce. As silver prices rise, silver miners are trying to get more profit in silver by hedging and selling new silver.

Silver was used as money by the Greeks, Romans and Egyptians for thousands of years, after which the Chinese people gave more importance to silver currency by using it as coins. But due to the high consumption of silver and its use in solar and electronics sectors, there are fears that there will be shortage of silver. It has become difficult to understand why prices have not risen as much as expected.

Many experts believe that the demand for silver is being satisfied due to the increase in the income of silver mines and old silver, which will not allow the shortage of silver. A shortage of silver is sure to cause a sudden spike in silver prices.

While the global silver production has been estimated at 1.6 million ounces, in 2020, silver mine production was around 25,000 tons and analysts say that there will be a shortage of silver by 2028. There will be an overall boom in silver.

Global strong news in the domestic gold market has pushed the price of gold up to Rs.61500 with GST. Wholesale jewelers are not willing to build stock by buying gold at high prices. After Ramnavami, the famine is expected to end. There has been no special demand for Gudi Pada and some sales of gold coins have been recorded. On Thursday, gold futures were trading at Rs.59,250 per ten grams and gold futures were trading at Rs.58,500 per ten grams, which was quoted at Rs.750 per ten grams lower than futures in bills without gold present, while gold was quoted at Rs.59,000 + GST ​​3 percent in bills. But many traders in the bill did not have purchase deals. Such traders extract costs by playing the bullish bearish game in futures.

Importers order limited gold and refineries continue to run refineries by ordering gold bars. Meanwhile, smuggled gold is coming to the country from Nepal, Bangladesh, Myanmar, Bhutan etc. in large quantities. Traders say smuggled gold is the only source of supply. A gold dealer in the south has had cash and unbilled gold jewelery seized from several of his branches in a raid there.

Overall, the possibility of raising the price has increased after the scarcity of gold. It was difficult for exporters to get gold at first. But currently banks are giving gold to exporters but orders are not being received raising gold prices and exports will decrease.