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Gold has been considered an essential part of India's socio-cultural setting for the last many centuries. From being treated as an auspicious element in traditions and ceremonies to being a reliable investment, its significance has grown steadily. It is a fact that households in India collectively hold over 11% of the total gold in the world. Read on to learn more about the historical data of gold rates and how it has influenced the buying behaviour of millions of Indians.
Gold Rates History from 1964 to Present
The table below shows the average annual price of 24-karat gold per 10 grams from 1964 to the present. Analyzing these trends aids in understanding the historical gold rates in India. This will benefit in making informed decisions for investment plans.
Year | Price in Rs (24 karat per 10 grams) | % change from the previous year |
|---|---|---|
1964 | 63.25 | |
1965 | 71.75 | 13% |
1966 | 83.75 | 17% |
1967 | 102.5 | 22% |
1968 | 162 | 58% |
1969 | 176 | 9% |
1970 | 184 | 5% |
1971 | 193 | 5% |
1972 | 202 | 5% |
1973 | 278.5 | 38% |
1974 | 506 | 82% |
1975 | 540 | 7% |
1976 | 432 | -20% |
1977 | 486 | 13% |
1978 | 685 | 41% |
1979 | 937 | 37% |
1980 | 1,330.00 | 42% |
1981 | 1670 | 26% |
1982 | 1,645.00 | -1% |
1983 | 1,800.00 | 9% |
1984 | 1,970.00 | 9% |
1985 | 2,130.00 | 8% |
1986 | 2,140.00 | 0% |
1987 | 2,570.00 | 20% |
1988 | 3,130.00 | 22% |
1989 | 3,140.00 | 0% |
1990 | 3,200.00 | 2% |
1991 | 3,466.00 | 8% |
1992 | 4,334.00 | 25% |
1993 | 4,140.00 | -4% |
1994 | 4,598.00 | 11% |
1995 | 4,680.00 | 2% |
1996 | 5,160.00 | 10% |
1997 | 4,725.00 | -8% |
1998 | 4,045.00 | -14% |
1999 | 4,234.00 | 5% |
2000 | 4,400.00 | 4% |
2001 | 4,300.00 | -2% |
2002 | 4,990.00 | 16% |
2003 | 5,600.00 | 12% |
2004 | 5,850.00 | 4% |
2005 | 7,000.00 | 20% |
2007 | 10,800.00 | 54% |
2008 | 12,500.00 | 16% |
2009 | 14,500.00 | 16% |
2010 | 18,500.00 | 28% |
2011 | 26,400.00 | 43% |
2012 | 31,050.00 | 18% |
2013 | 29,600.00 | -5% |
2014 | 28,006.50 | -5% |
2015 | 26,343.50 | -6% |
2016 | 28,623.50 | 9% |
2017 | 29,667.50 | 4% |
2018 | 31,438.00 | 6% |
2019 | 35,220.00 | 12% |
2020 | 48,651.00 | 38% |
2021 | 48,720.00 | 0% |
2022 | 52,670.00 | 8% |
2023 | 63,820.00 | 21.17% |
2024 (Till Today) | 63,440.00 | -0.60% |
How to Interpret the Gold Rate Trend
This historical overview suggests an upward trend in gold rates in India, except for a few dips. You can see that in the last 10 years, because of various geopolitical and economic factors, the gold rate has about doubled. In 2023 alone, because of the Russia-Ukraine war, US Fed rate changes, and inflation, there has been a 10% increase in 10 months.
This consistency in the price rise underscores the perception of gold as a long-term investment option. It reaffirms the common belief that gold investment is a safe haven, especially during times of economic uncertainties.
What Factors Influence the Gold Prices
Several factors play a role in determining the price of gold in India. The main contributors are:
- Global demand for gold
- Global market conditions
- Political landscape
- Government policies
- Economic changes
These significantly impact the gold rates across the world, and the same is true with the gold rates in India. In addition, increased demand during festivals like Dhanteras, Akshaya Tritiya, and weddings, coupled with its status as a safe investment, also directly influences its value.
Moreover, its status as a hedge against inflation and currency depreciation also increases its attractiveness as an investment option, particularly during times when global economic uncertainties prevail.
Strategic Investment Decision – When to Buy Gold in India
There is no one single time that is perfect to buy gold. The historical trends serve as a guiding light and offer insights into potential future fluctuations.
Buying gold in India requires a keen eye on various economic and geopolitical events. Purchasing during downturns and selling during peaks can maximize returns and provide safety during financial crises.
Hallmark Gold
Hallmark gold is 22-karat gold that is certified that it is 91.6% pure and is commonly referred to as 916 gold. This is conformant to international standards and is certified by the labs recognized by the Bureau of Indian Standards and is most commonly used for making jewelry. Hallmarked gold is laser-engraved with all the relevant details pertaining to its purity.
There is no additional charge for Hallmarked gold, and it is sold at the same rate across the country, although there might be minor differences in prices between different cities for the Hallmark gold.
How to Invest in Gold in India?
Investing in gold in India requires customers to have a cautious approach and a good understanding of the prices, if they want to make it a good investment.
Customers can go for:
- Physical Gold – where gold is purchased in physical form.
- Digital Gold – where gold is purchased in digital form which is backed by 24 karat gold investment of same value.
- Gold Sovereign Bonds – issued by RBI, it is one of the best ways to invest in digital gold, providing annual interest in addition to having the asset on paper.
- Gold Mutual Funds – these invest in physical gold, stocks of gold companies, and other gold investments. Investing in gold mutual funds help in diversifying gold investments.
- Gold ETFs – These are traded similar to equities through gold exchange-traded funds’ gold investments.
Why Invest in Gold in India?
Gold serves as an easy-to-carry treasure. Some reasons why you must invest in Gold in India are:
- Historically, gold has shown its steadiness and growth. This investment helps to ward off the decline in other assets like real estate and equities that are given to higher fluctuations and risks. This helps in diversifying assets.
- Gold is readily accepted for loan and is easy to carry. During tough times, it helps to bring quick relief to its owners.
- Gold can easily be sold as well, so is easy to access its value when you need it.
Important Elements to Keep in Mind While Buying Gold
- Hallmark gold: always insist on hallmark gold. This ensures purity and quality.
- Price changes: although it is impossible to predict times, keep a watch on the price changes and buy when there is a downfall in prices.
- Reputed seller: always buy from reputed sellers. This will give you peace of mind with the assurance that you are getting good worth for your money.
FAQs on Gold Price History:
1. What is hallmark gold? What is its use?
Hallmark gold or 916 gold refers to 22-karat gold, denoting its purity level of 91.6% pure gold and contains 91.6% gold in 100 grams of gold. It is most commonly used for jewellery making.
2. What is the difference between 22-karat gold and 24-karat gold?
The difference lies in purity. 24-karat gold is 100% pure gold, while 22-karat gold contains 91.67% pure gold with alloyed metals like silver and copper.
3. What is hallmark gold? What is its use?
Hallmark gold or 916 gold refers to 22-karat gold, denoting its purity level of 91.6% pure gold and contains 91.6% gold in 100 grams of gold. It is most commonly used for jewellery making.
4. What is the difference between 22-karat gold and 24-karat gold?
The difference lies in purity. 24-karat gold is 100% pure gold, while 22-karat gold contains 91.67% pure gold with alloyed metals like silver and copper.
5. How can I check the purity of gold?
You can verify gold purity by visiting any reputed jeweler or by looking for a BIS-certified lab that tests and certifies gold.
