Gold Price Drop: Could Gold Fall to ₹ 77,000? A Major Warning for Investors from an Expert

Gold Price Drop: Currently, gold prices are sky-high, causing concern for the common middle class and investors. However, market experts report that a significant drop in gold prices may occur in this situation. According to Amit Goel, co-founder and Chief Global Strategist of Pace 360, gold prices could soon fall sharply, which serves as a warning for investors.

Why the Fear of This Fall?

Amit Goel has pointed out that such a drastic price increase in gold is rarely seen in history. In the last 40 years, gold and silver prices have risen this sharply only twice, and on both occasions, the dollar index was weak. Consequently, after the price surge in both instances, it fell again rapidly. He fears that the price of gold will reach a level that marks the end of the ‘bull run’. As soon as the price reaches this stage, investors will start selling their gold, leading to a rapid price decline.

How Much Can Gold Prices Fall?

According to market expert forecasts, gold prices could fall by about 30 to 35 percent. If this analysis proves true, the price of 10 grams of gold could drop to around ₹77,701. The risk of a fall is even greater for silver. Silver prices could fall by up to 50 percent, meaning the price of one kilogram of silver could be around ₹77,450.

• Gold Price: Potential to decrease by 30-35%.
• Silver Price: Potential to decrease by up to 50%.

However, many believe that once gold or silver prices rise, they do not come down easily.

What is the Reason for Such a Big Drop in Silver Prices?

The demand for silver is primarily in the industrial sector, such as in photovoltaic cells, semiconductors, and the manufacturing of electric vehicles. During an economic recession, the demand from these industries will decrease, directly impacting silver prices. Currently, the silver market has created a “bubble,” making the risk of a price drop for silver even greater than for gold.

Advice for Investors

In this situation, Amit Goel advises investors to adopt a “go slow” policy. Here is some advice for those who want to invest for the long term:

• Wait: It would be wise to wait until the price of gold comes down to around $2600 to $2700 per ounce, or the price of 10 grams of gold is near ₹81,000 to ₹84,000.
• Be Cautious: Greater caution should be exercised in the case of silver.
• Strengthen Your Portfolio: Experts recommend strengthening your investment portfolio beyond just gold and silver.

The current time is quite volatile for short-term investors. Therefore, if long-term investors wait a bit longer, their investment risk could be significantly reduced.

Disclaimer: Before investing, you must consult your investment advisor. This report is published for informational purposes only, and we do not offer any investment advice.