We Indians are the largest consumers of gold in the world, there is no other population in any other country that has a demand for gold as strong as ours. In fact, gold constitutes 12.50% of our total imports (in FY 2012-2013), which is a whopping $61,409 million.
Fluctuations in prices affect the purchasing behavior as a lot of Indians buy gold as a “safe” investment. Gold is viewed as a commodity by those who invest in it, and these investors constantly watch the market for fluctuations that could mean a potential profit, or the possibility of acquiring the asset at a lower price.Auspicious Day To Buy Gold : Akshaya Tritiya on 18th April 2018
Historical gold rate trend in India
The below chart represents the historical movement of gold prices in India. It’s important to note that the gold prices would fluctuate during the year and the amount mentioned below is a representation of the average price for that year.
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| Year | Price | Year | Price |
| 1964 | Rs. 63.25 | 1991 | Rs. 3,466.00 |
| 1965 | Rs. 71.75 | 1992 | Rs. 4,334.00 |
| 1966 | Rs. 83.75 | 1993 | Rs. 4,140.00 |
| 1967 | Rs. 102.50 | 1994 | Rs. 4,598.00 |
| 1968 | Rs. 162.00 | 1995 | Rs. 4,680.00 |
| 1969 | Rs. 176.00 | 1996 | Rs. 5,160.00 |
| 1970 | Rs. 184.00 | 1997 | Rs. 4,725.00 |
| 1971 | Rs. 193.00 | 1998 | Rs. 4,045.00 |
| 1972 | Rs. 202.00 | 1999 | Rs. 4,234.00 |
| 1973 | Rs. 278.50 | 2000 | Rs. 4,400.00 |
| 1974 | Rs. 506.00 | 2001 | Rs. 4,300.00 |
| 1975 | Rs. 540.00 | 2002 | Rs. 4,990.00 |
| 1976 | Rs. 432.00 | 2003 | Rs. 5,600.00 |
| 1977 | Rs. 486.00 | 2004 | Rs. 5,850.00 |
| 1978 | Rs. 685.00 | 2005 | Rs. 7,000.00 |
| 1979 | Rs. 937.00 | 2006 | Rs. 8,400.00 |
| 1980 | Rs. 1,330.00 | 2007 | Rs. 10,800.00 |
| 1981 | Rs. 1,800.00 | 2008 | Rs. 12,500.00 |
| 1982 | Rs. 1,645.00 | 2009 | Rs. 14,500.00 |
| 1983 | Rs. 1,800.00 | 2010 | Rs. 18,500.00 |
| 1984 | Rs. 1,970.00 | 2011 | Rs. 26,400.00 |
| 1985 | Rs. 2,130.00 | 2012 | Rs. 31,050.00 |
| 1986 | Rs. 2,140.00 | 2013 | Rs. 29,600.00 |
| 1987 | Rs. 2,570.00 | 2014 | Rs.28,006.50 |
| 1988 | Rs. 3,130.00 | 2015 | Rs.26,343.50 |
| 1989 | Rs. 3,140.00 | 2016 | Rs.28,623.50 |
| 1990 | Rs. 3,200.00 | 2017 | Rs.29,667.50 |
With the exception of a few lows between some years, it can be seen from the table that the gold price trend has historically been on the rise, lending credit to the argument that gold is a safe investment over long periods of time.
Studying the gold rate trend in India
Studying the gold rate trend in India could offer an insight into future fluctuations and investment plans can be made accordingly. The gold rate depends on a number of factors like the stability of the central bank, the supply and demand of gold in the market, quantitative easing, government reserves, the health of the jewellery industry and overall yearly production to name a few.
In 2016, the lowest price recorded was Rs.24,910 per 10 grams on January 1st 2016. Gold prices soared to Rs.32,336 per 10 grams on 6th July 2016, the highest price recorded for this year. In the first half of the year, gold performance was low but showed an upward trend in the second half. The main events that affected gold rates this year included the jewellers strike against strike PAN card regulations, the Brexit vote, the expectations of an interest rate hike by the U.S. Federal Reserve, the festive and wedding seasons, Trump’s win in the U.S presidential elections and PM Modi’s demonetisation scheme.
Also check Today's Gold Rate in the most popular Indian cities
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