The price of gold has experienced significant volatility recently. Colin Shah attributed the volatility to a variety of factors, including the stability of the U.S. economy, high inflation and lingering uncertainties in China and Europe.
Despite the turmoil, he expects gold and silver prices to continue to rise in the coming quarters, mainly driven by inflation, interest rate changes and geopolitical factors.
Regarding the prospect of gold, Colin Shah said that the upside potential may be as high as $2,100 per ounce, while the downside risk is relatively limited, and it may pull back around $50. Factors such as inflation data, employment data and interest rates are critical in determining these price moves.
Regarding silver, Colin Shah noted that it also experiences volatility, but interestingly, gold and silver tend to follow similar patterns. Demand for silver, especially around Diwali and the gift-giving season around Christmas, is expected to remain strong, potentially leading to higher prices.
Colin Shah also touched on the impact of external factors, such as ongoing geopolitical tensions such as the Ukraine crisis, which could further affect precious metals prices.
Turning to the background of India, Colin Shah discusses the performance of the domestic precious metals sector over the past eight months. The industry has experienced periods of strong retail demand followed by relatively slow periods. He attributed the volatility to a variety of factors and predicted a more stable and positive season ahead, driven by the upcoming election and increased demand related to weddings.
Regarding lab-grown diamonds, it is increasingly accepted as an alternative to natural diamonds, especially in Western markets. Colin Shah highlighted government support and growing consumer interest, especially in the US, where 30 percent of engagement rings recently sold are lab-grown diamonds. He predicts a bright future for the lab-grown diamond industry in the coming years.
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About the State of the Economy Podcast
India’s economy has been hailed as a bright spot amid the general gloom gripping the rest of the world. But while other industries appear to be pulling out all the stops, several continue to stall. To help you understand the contradictions in this country, career line Bringing you podcasts from experts in everything from finance and marketing to technology and startups.