How Will the Union Budget Impact Gold Prices?
The Gold Prices have been known to reflect the sentiments of investors. With the announcement of Union Budget in India on February 1st, we wanted to know what this year might look for Gold, and Silver as investment options.
To crack this code, we reached out to several industry leaders, market pundits and investors. Here is what they had to say.
The Impact of Union Budget on Gold Prices in 2020
Ajeet Khurana – Prolific Angel InvestorRegardless of how you view the budget proposals, the fiscal proposals are not enough to elevate the flagging economy. If my prediction is right, we are in for a tough time in various markets. And that should cause people to seek refuge… Click To Tweet
Manish Johari, Sr. Vice President LeadAngels
Global trade war and geopolitical uncertainties in current times makes a strong case of holding gold in paper/ digital form in portfolio. Click To Tweet
Dr. Seema Sharma, Head of Department DMS IIT DelhiReduction in tax rates will lead to more investment in gold. The cummulative effect of small individual buyers will push the Gold prices upside. Click To Tweet
Tapan Ray, MD & Group CEO
We welcome the announcement in today’s Union Budget on setting up of an International Bullion Exchange at GIFT IFSC. This will lead to better price discovery of gold, create more jobs and further enhance India’s position in the bullion… Click To Tweet
Nischal Shetty, CEO WazirXIn the short term gold prices will rise as people will find gold to be a safer investment compared to equity markets. The budget hasn’t really lifted the spirits of the market and this is an indicator that gold prices will rise in the… Click To Tweet
Kumar Gaurav, CEO CashaaBudget 2020 gives petite favor to lower middle class and I believe that a significant amount of these savings from the tax will go into gold products, pushing the gold price up in sort term. Click To Tweet
Chandresh Sampat, Vice President
More discretionary spend in the lower income groups likely to positively impact FMCG, small ticket consumer durables (eg mobiles and accessories, cheaper TVs), lifestyle (movies, QSR etc) + small ticket lenders. Tax saving instruments… Click To Tweet
Brand Capital, The Times Group
Jason Fernandes, Founder
I think in the short term Bitcoin and Gold prices are likely to rise, but this would have less to do with the Union budget and more to do with fears of coronavirus, its effect on financial markets and the increasing view of BTC as a… Click To Tweet
Naimish Sanghvi, CEO & Editor-in-chief
I see that government did a good job at convincing middle clas that the budget was good for them. So no one is going to panic and run to buy a store of value. The government wants people to spend money – simplifying the tax regime means… Click To Tweet
Anshul Dhir, Co-Founder
I think, now is the time, FM should consider setting up a regulator for spot gold market & treating gold as an asset class for obtaining loan facility while purchasing to boost local demand. Click To Tweet
Ramji Porwal, VP- APAC equities client management
None – Budget is a non event for Gold and with no change in tax. It’s no impact on gold trajectory Click To Tweet
Krishna Chokhani, Managing Partner
Currently, the impact is bad as gold prices are dropping. However, the impact will be better in the long run. Click To Tweet
Zone Startups India Fund
Rishi Kapal, Managing Partner
Gold has proven it's worth as a sustainable all-weather asset class delivering returns to investors through the crests and troughs of financial markets. It would have made perfect sense in the budget to support the gold industry in… Click To Tweet
Global ScaleUp Accelerator
Mahavir Pratap Sharma, CEO
We can expect a marginal increase in Gold prices as a direct result of the Union Budget. Click To Tweet
Rajasthan Angel Investor Network
Abhijay Thacker, Investment Analyst
Shreyansh Kapoor, Vice President
So far, I have not heard anything favourable for the gems and jewellery industry. The industry is still dominated by small retailers and family-owned setups who don’t fall under the corporate category. The likes of Tanishq and Malabar… Click To Tweet
We would like to thank all the industry leaders for sharing their thoughts and comments.
The markets have already spoken, in 2019 we saw a 20%+ increase in Gold Prices. With the slowing of the economy around the globe, investors are moving their assets to centuries tested asset – Precious metals.
OroPocket enables you to safely invest in digital assets like Gold, and Silver with the click of a button. Whether the impact of budget on gold prices is good or bad, it always makes sense to diversify your portfolio.