Diwali, Dhanteras 2022: Gold price slips to Rs 50,600, silver remains unchanged at Rs 56,150
Gold, silver prices on October 22: On Saturday, one gram of 22-carat gold is available at Rs 4,635. Meanwhile, an equal quantity of 24-carat gold is available at Rs 5,060. Silver prices remained unchanged at Rs 56,150 per kg.
- Oct 22, 2022,
- Updated Oct 22, 2022 3:14 PM IST
Diwali festivities start with Dhanteras today. Gold prices for both 22 and 24-carat weights have dipped marginally to Rs 46,350 and Rs 50,600, respectively, in the domestic markets. On Saturday, one gram of 22-carat gold is available at Rs 4,635. Meanwhile, an equal quantity of 24-carat gold is available at Rs 5,060. Silver prices remained unchanged at Rs 56,150 per kg.
In the international market, gold bounced back from a three-week low as both the US dollar and Treasury yields traded lower on expectations that interest rate hikes by the US Federal Reserve may end soon.
The spot gold advanced 1.0 per cent to $1,643.61 per ounce on Friday morning trimming a second weekly decline. US gold futures gained 0.8 per cent and was at $1,649.80 per ounce in New York.
As per experts, gold might gain its shine back as the peak of Fed tightening of rate hike might be right around the corner. That is good news for bullion. Gold for ages has been considered a valuable asset, which is a proven store of value that safeguards one’s portfolio, besides giving better risk-adjusted returns.
“Dhanteras is considered to be the most auspicious day for buying in India, as it is said to bring good fortune. It is the most preferred form of investment and it has given more than a CAGR of 11 per cent returns in the last 25 years. Though it has given only a 6 per cent return this year to date in 2022, it is expected to give 12-15 per cent returns by next year, as there would be a pause in interest rates around the world and investors will flock towards gold,” says Prithviraj Kothari, Managing Director of RiddhiSiddhi Bullions Limited.
Domestic prices
The gold rates are different in different states. Like in Chennai, the gold prices are the highest, whereas, in Mumbai and Kolkata, it is comparatively less. The state government levies additional charges and taxes. In addition to this, buyers have to pay additional charges to the jewellers making charges and the GST.
On Saturday, the rate for 24-carat gold in Mumbai and Kolkata is Rs 50,450, while the price for 24-carat gold is Rs 46,250. In Delhi, the prices for 24-carat and 22-carat are Rs 50,600 and Rs 46,350, respectively. In Chennai, where gold is sold at the highest rates, 24-carat and 22-carat gold is trading at Rs 50,900 and Rs 46,650, respectively.
| Cities | 22-Carat Gold Rates | 24-Carat Gold Rates |
| Chennai | Rs 46,650 | Rs 50,900 |
| Mumbai | Rs 46,250 | Rs 50,450 |
| Delhi | Rs 46,350 | Rs 50,600 |
| Kolkata | Rs 46,250 | Rs 50,450 |
| Bangalore | Rs 46,300 | Rs 50,500 |
| Hyderabad | Rs 46,250 | Rs 50,450 |
Gold vs silver for investment
As per traditional investment norms, both gold and silver are considered safe havens during economic and political uncertainties. Silver was the worst performer among precious metals in 2022. The metal has lost more than 13 per cent since January this year due to a stronger US dollar, backed by hawkish steps the US Federal Reserve has taken to curb inflation.
But if we consider future prospects, as silver is an industrial metal and is an integral part of many green technologies, investing in silver now can reap good benefits in the long run.
Besides, silver loadings are in much demand in India for the electrification of electric vehicles and 5G infrastructures. “We have many new technologies coming in, where silver metal is an important constituent. These applications are offering structural support to the metal. Silver’s physical demand is expected to rise by 5 per cent in 2023. Therefore, we can expect good trade there,” says Rahul Kalantri, Vice President, Commodities, Mehta Equities Ltd.
Diwali festivities start with Dhanteras today. Gold prices for both 22 and 24-carat weights have dipped marginally to Rs 46,350 and Rs 50,600, respectively, in the domestic markets. On Saturday, one gram of 22-carat gold is available at Rs 4,635. Meanwhile, an equal quantity of 24-carat gold is available at Rs 5,060. Silver prices remained unchanged at Rs 56,150 per kg.
In the international market, gold bounced back from a three-week low as both the US dollar and Treasury yields traded lower on expectations that interest rate hikes by the US Federal Reserve may end soon.
The spot gold advanced 1.0 per cent to $1,643.61 per ounce on Friday morning trimming a second weekly decline. US gold futures gained 0.8 per cent and was at $1,649.80 per ounce in New York.
As per experts, gold might gain its shine back as the peak of Fed tightening of rate hike might be right around the corner. That is good news for bullion. Gold for ages has been considered a valuable asset, which is a proven store of value that safeguards one’s portfolio, besides giving better risk-adjusted returns.
“Dhanteras is considered to be the most auspicious day for buying in India, as it is said to bring good fortune. It is the most preferred form of investment and it has given more than a CAGR of 11 per cent returns in the last 25 years. Though it has given only a 6 per cent return this year to date in 2022, it is expected to give 12-15 per cent returns by next year, as there would be a pause in interest rates around the world and investors will flock towards gold,” says Prithviraj Kothari, Managing Director of RiddhiSiddhi Bullions Limited.
Domestic prices
The gold rates are different in different states. Like in Chennai, the gold prices are the highest, whereas, in Mumbai and Kolkata, it is comparatively less. The state government levies additional charges and taxes. In addition to this, buyers have to pay additional charges to the jewellers making charges and the GST.
On Saturday, the rate for 24-carat gold in Mumbai and Kolkata is Rs 50,450, while the price for 24-carat gold is Rs 46,250. In Delhi, the prices for 24-carat and 22-carat are Rs 50,600 and Rs 46,350, respectively. In Chennai, where gold is sold at the highest rates, 24-carat and 22-carat gold is trading at Rs 50,900 and Rs 46,650, respectively.
| Cities | 22-Carat Gold Rates | 24-Carat Gold Rates |
| Chennai | Rs 46,650 | Rs 50,900 |
| Mumbai | Rs 46,250 | Rs 50,450 |
| Delhi | Rs 46,350 | Rs 50,600 |
| Kolkata | Rs 46,250 | Rs 50,450 |
| Bangalore | Rs 46,300 | Rs 50,500 |
| Hyderabad | Rs 46,250 | Rs 50,450 |
Gold vs silver for investment
As per traditional investment norms, both gold and silver are considered safe havens during economic and political uncertainties. Silver was the worst performer among precious metals in 2022. The metal has lost more than 13 per cent since January this year due to a stronger US dollar, backed by hawkish steps the US Federal Reserve has taken to curb inflation.
But if we consider future prospects, as silver is an industrial metal and is an integral part of many green technologies, investing in silver now can reap good benefits in the long run.
Besides, silver loadings are in much demand in India for the electrification of electric vehicles and 5G infrastructures. “We have many new technologies coming in, where silver metal is an important constituent. These applications are offering structural support to the metal. Silver’s physical demand is expected to rise by 5 per cent in 2023. Therefore, we can expect good trade there,” says Rahul Kalantri, Vice President, Commodities, Mehta Equities Ltd.