Gold Price Surge Hits End as International Prices Slump

Indian gold prices have more than tripled in value since 2006, from Rs 8400 per 10 grams to over Rs 27,000 per 10 grams. This remarkable surge in value has been driven by global events and economic trends, making Indian gold one of the few asset classes to provide such significant returns.

Looking at the performance of Indian gold prices since 2008, it is clear that international events have had a major impact on domestic prices. In 2008, Indian gold was trading around Rs 12500 levels, and with the collapse of Lehman Brothers and the global financial crisis, gold scaled dizzy heights as investors increasingly took shelter in gold.

By 2012, Indian gold had hit a historic peak of over Rs 32,000 per 10 grams, but by April 2013, international prices of gold slumped with the Dow Jones hitting a historic peak and economic recovery in the US gathering steam. This led to investors dumping gold for equities on hopes of economic recovery, causing Indian gold to slump to Rs 26,000 levels.