So, we have learned about why Bitcoin can’t replace GOLD as the ultimate store of wealth.
The ongoing pandemic tells us a relatively new story about the GOLD.
As fresh cases of COVID-19 are reported every hour, things have become wild and volatile these days. Lockdown across States has resulted in huge employment and financial losses.
But if we look at the silver linings of this black cloud, the crypto market and commodity sector have been witnessing new growth and engagements amid this sudden outbreak.
If we look at the market performance of Gold and Silver, one of the most in-demand commodities and a medium of exchange, the prices of the two have gone low because of various underlying reasons.
Gold and Silver are commodities used for exchanging goods and services. They have been in use for ages. Also, if we look back, Copper Coins, Gold Bars and Silver Coins were predominantly used to exchange commodities.
Also, as the technology evolved with time, the techniques to possess Gold and Silver kept on transforming. From physical Gold and Silver to virtually owning these precious metals, the world has turned the tables amid pandemic.
So what exactly are the reasons behind these sheer dips in physical Gold and Silver prices, and what exactly is virtual Gold and Silver and how to possess them? Let’s study briefly.
Gold and Silver Amidst Lockdown
In November 2020, the prices of Gold slipped 5%, giving markets and buyers a good time to buy and invest in these assets.
As the union budget, 2021 was rolled out in the Indian Parliament by the Finance Ministry; it mentioned that the prices of commodities like Gold, Silver and Coal would go down as the customs duty won’t be levied.
It’ll reduce import duty from 12.5% to 7.5% giving customers extra benefits of availing Gold and Silver from stores.
Moreover, Kozhikode-based international jewellery retailer Ahammed stated,
“The prices will eventually go down as it has hit the commodity sector as well. Besides, this elimination in duties will unleash the demand of the market”.
India imports around 800-850 Tonnes of Gold annually. It’s calculated that the next 100-120 Tonnes of Gold will enter the country through the grey market. And a duty cut will ease the jewellery exports.
As vaccination programs are improving daily, the MCX market as of April 2021 has slumped to a larger extent. Specifically, Gold slipped from an all-time high of 56,018 to 40,000. That accounts for a 24% dip in the prices.
However, it’s quite not possible that there would be a change of prolonged lockdown as it can alleviate the economic levels of the country. So this time is indeed the GOLDEN TIME to buy the yellow metal.
As technology surged and new methods of investments and trading were found to be effective, the concept of virtual Gold and Silver went on fire as people went crazy to possess Digital Gold and Silver.
Yes, there are several reasons beneath this soaring demand and bullish nature. Before we move further, let’s quickly look at what are Virtual Gold and Silver.
Virtual Gold and Silver
God’s money, or Gold, has been a symbol of wealth and stability.
It’s not only a mode of exchange but has a great value embedded in it. From its robust nature to lustre, shine, and immune to corrosion, Gold signifies God.
However, there were cases of illegitimacy and alteration in the quality.
Virtual Gold and Silver is a form to avail Gold and Silver online. They’re more like digital assets, such as Bitcoin or Ethereum.
Since several exchanges provide you with a platform to buy assets, they ensure your possessions are clear cut, pure, 24 karats, and legitimate.
You can start investing in Gold and Silver digitally with as low as ₹100, or even less, making it a suitable investment option for everyone.
Digital Gold and Silver Performing Well in Pandemic
Ever since lockdown happened, the availability of basic commodities went scarce. However, the concept of digital Gold and Silver went to the moon, allowing even fewer investments.
Compared to last year, the sales soared 86% as Paytm featured the Gold buying section on their app facilitating that allowed users to buy Gold and Silver.
PhonePe, another competitive app, jumped over six-fold as volume increased on the app.
Reports said that half the volume was recorded from smaller towns and villages during major festivals like Akshaya Tritiya, Dussehra, Dhanteras, and Diwali.
Tier-2 and Tier-3 seemed more involved as the investment started from ₹100, allowing anyone to buy and bless themselves with Gold and Silver.
Also, reports of MMTC-PAMP, this huge engagement came from smaller sections of the country. Around 30% of transactions happened from their portion recording buyer’s age from 30-45.
Gaurav Mathur, MD of SafeGold, reported the Gold sales had increased by 2.5x, recording 80% of the total value from the top 50 cities across India.
Well, there’s no second thought that the prices of physical Gold and Silver decelerated since lockdown. Indeed, there were challenges behind. However, the concept of buying digital Gold and Silver went on fire.
Despite the challenges the country faces, commodities still receive love and traffic, which shows the attachment of families and people to Gold and Silver either in a physical state or in a virtual state.
Now, it’s possible to spend your GOLD and SILVER holdings using UPI across India.
Now, you can spend your GOLD and SILVER holdings just like cash across India whenever you want using OroPocket’s new UPI feature.