Gold prices are continuously increasing in India, making it even more expensive for the common man. Today, the price of 10 grams of 24-carat gold in cities like Delhi, Jaipur, Lucknow and Chandigarh is ₹1,43,760. Whereas, the price of 22-carat gold is ₹ 1,31,790.
As inflation increases, the value of money decreases. We often calculate how much ₹1 crore will be worth in the next ten or twenty years. But have you ever wondered what the price of gold will be by 2050? Obviously, as the value of money decreases, you will not be able to buy as much gold for ₹1 crore in the next ten or twenty years as you can today. So, just saving money is not enough; Keeping inflation in mind, smart investment planning is also very important.
gold is giving good returns
There has been a tremendous rise in the prices of gold in the last few years. Due to this the wealth of its investors has increased manifold. In 2000, the price of 24-carat gold was just ₹4,400 per 10 grams, and in 2020, the price of 10 grams of 24-carat gold was ₹50,000. Today, it has crossed ₹1,40,000 per 10 grams. This means that gold prices have almost tripled in just six years. Data for the last 30 years also shows that the average annual compound growth rate (CAGR) of gold prices in India has been 10.83 percent. This means that your previous investments in gold have grown at the same rate every year, which shows better returns than fixed deposits.
Decreasing value of rupee and inflation are the main reasons for this. Global tensions and uncertainties, as well as continued buying by central banks, are increasing demand for gold as a safe haven asset. As a result, its price in US dollar terms has also increased by 5-7 percent. Investors are also getting attracted towards gold due to its good returns.
What will the price be by 2050? As gold is now above ₹1.40 lakh, it shows a CAGR growth rate of 14.6 percent. If gold prices continue to rise at the same rate (14.6 percent CAGR) for the next 25 years, then by 2050 the price of 10 grams of gold may reach approximately ₹ 40 lakh. This means that at that time, only 25 grams of gold can be bought for ₹1 crore. However, this calculation is just an estimate. Gold prices depend on many domestic and global factors, such as interest rates, dollar strength, central bank policies and the global economy. Based on this estimate, the price of gold in 2050 could be more or less than ₹40 lakh for 10 grams.