Gold prices likely to touch Rs 50,000-55,000 by end of 2020

The prices are likely to shoot up in the next two-three years with fear, speculation and uncertainty around the current economic situation. In an interview with Moneycontrol, Dr Saurabh Gadgil, Managing Director - PNG Jewellers, recommended buying the precious metal in systematic investment plan (SIP) mode. However, we are recommending customers to purchase gold with a long term view and possibly only in the physical format. In India, along with pricing, factors like our culture, society, marriages as well as religion play an important role in the purchase of gold. Q: What is the sector request to the government in terms of reducing custom duty on precious metal? A: The jewellery sector has been stressed for almost two to two-and-a-half years and import duty reduction has been an agenda for us because with the higher prices of gold in dollar terms and the rupee depreciating against the dollar, prices here have gone up so we are definitely asking the Government of India to look into duty reduction. This demand will see a sharp fall in the days to come and, therefore, I believe the price of silver will not mirror that of gold as per the gold-silver ratio. A: Fear, uncertainty and speculation around the current economic situation have a big impact on driving the demand for gold. A: I believe people should not sell but purchase gold at regular intervals if they have the liquidity, I don’t think Silver is an investment option right now. Q: The mandatory hallmarking of gold jewellery coming into effect from January 15, 2020 will instil confidence in the retail buyer?