As the festive season approaches, gold and silver prices continue their stunning rally, hitting multiple record highs across Indian markets. Over the past four years, gold has rewarded investors with extraordinary returns — over 152% growth — outperforming nearly every other investment class. Silver, too, has mirrored this impressive upward trend.
However, with such sharp gains, many investors are asking the same question: Is it still a good time to buy gold before Diwali, or have we missed the bus?
Let’s take a closer look at the factors driving this bull run and what experts predict for gold in the coming months.
Why Are Gold and Silver Prices Rising?
1. Global Geopolitical Tensions
Gold and silver are classic “safe-haven” assets. Whenever global uncertainty rises — due to wars, conflicts, or economic instability — investors turn to these metals for security.
In recent years, geopolitical volatility has spiked, from the Russia-Ukraine war to Middle East tensions and increasing rivalry between the US and China. The return of Donald Trump in 2025 has only added another layer of unpredictability, pushing more investors toward gold.
2. Uncertainty Around the US Federal Reserve
The Federal Reserve Bank plays a crucial role in global economic stability. However, tensions between Fed Chair Jerome Powell and President Trump have raised questions about the Fed’s independence and future policy direction.
This uncertainty has further boosted investor appetite for gold and silver as safe, long-term hedges against inflation and potential currency risks.
3. Growing Industrial Demand
silver have become essential in the manufacturing of solar panels, electronics, and electric vehicles — sectors that are experiencing significant global growth. Rising demand from renewable industries, especially in China, coupled with limited supply, has helped push prices higher.
4. Weakness in the US Dollar
A weaker dollar usually benefits gold and silver prices because it makes them cheaper for buyers using other currencies.
Recent global economic shifts and declining confidence in the dollar’s stability have led investors to diversify toward silver for wealth preservation.
5. Central Bank Buying
Many central banks, including those of emerging economies, have been buying large quantities to strengthen their reserves.
This sustained institutional demand not only tightens supply but also reinforces global confidence in gold as a safe, long-term store of value.
Should You Invest in Gold or Silver Before Diwali?
Experts say — yes, but wisely.
Commodity analysts remain strongly bullish on gold’s long-term potential. One expert told ET NOW Swadesh,
“Commodities like gold and silver represent real money. Their prices may fluctuate in the short term, but the long-term trend remains upward. Every dip should be viewed as a buying opportunity.”
Similarly, Philip Newman from Metals Focus predicts gold will continue to make new highs through 2026. He also expects silver to cross the $50 mark soon, given the rising industrial and investor demand.
Best Time to Buy Gold Before Diwali:
According to Kirit Bhansali, Chairman of GJEPC, it’s better to buy gold before Diwali rather than waiting for last-minute purchases.
He explained that given ongoing global instability, a major correction in gold prices is unlikely. Prices could continue to rise month after month, impacting consumer budgets as we near the festival.
Gold’s Recent Performance:
Just last week, gold prices in India touched a historic level of ₹1,18,444 per 10 grams, rising by almost ₹900 in a single day due to increased safe-haven demand amid concerns of a potential US government shutdown.
Although prices eased slightly on Friday due to profit booking, gold continues its seven-week winning streak in international markets.
Spot gold currently stands around $3,867 per ounce, with recent highs near $3,896 — signaling continued investor confidence.
Final Thoughts:
With global uncertainties, geopolitical risks, and rising industrial demand, gold remains a strong asset for both short- and long-term investors.
Experts unanimously suggest that those planning to buy gold before Diwali should not delay any further. Prices are more likely to climb steadily rather than fall sharply.
However, as always, investors should consult their financial advisors before making any major investment decisions.
(Disclaimer)
This article is for informational purposes only and should not be taken as investment advice. Please consult a certified financial expert before making any investment decisions.
❓ Frequently Asked Questions (FAQ)
1. Is it a good time to buy gold before Diwali 2025?
Yes. Experts believe gold will continue to rise due to geopolitical tensions and high industrial demand. Buying before Diwali could be beneficial as prices may climb further.
2. Why are gold prices rising in India right now?
Gold prices are increasing because of global uncertainty, strong central bank buying, weak US dollar, and growing industrial use in solar and EV sectors.
3. Will gold prices drop after Diwali?
Analysts suggest a sharp fall is unlikely. Instead, minor corrections may happen, but the long-term outlook remains bullish.
4. What is the current gold rate in India?
Gold recently hit an all-time high of around ₹1,18,444 per 10 grams due to safe-haven buying and global market trends.
5. Is silver also a good investment right now?
Yes. Silver is gaining demand from the renewable energy and electronics sectors. Experts predict silver could touch $50 per ounce soon.
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