Despite the turmoil in the Indian stock market following the 2024 Lok Sabha election results, experts assert that gold remains resilient. While the Nifty plummeted by 8.5% and the Sensex by nearly 6%, gold stands firm. Its stability in uncertain times reinforces its status as a safe haven asset.
Sachin Kothari, Director of Augmont Gold, highlighted to Business Today that Lok Sabha election results in India typically don’t directly influence gold prices due to India being a gold price taker, with prices primarily derived from London fixing. However, Kothari pointed out that the stance of various political parties on gold market policies, including duties and taxes, could still have an impact on the market dynamics.
In the past decade, the BJP-led government implemented a gradual increase in gold import duty from 10% to 15% as a measure to restrain gold imports. Similarly, during 2012 and 2013, the Congress-led government raised the gold import duty from 0% to 10%. Despite these policy interventions, current gold prices remain elevated, with rates around ₹72,000 for 10 grams on the MCX.
Colin Shah, MD of Kama Jewelry, conveyed to Business Today that despite the stability in consumer demand post-election, the industry emphasizes the importance of governance continuity. He emphasized the necessity for seamless ease of doing business. Despite facing challenges, Shah highlighted the flourishing trajectory of the Indian gems and jewellery sector over the last decade. He expressed optimism for policy reforms geared towards fostering a conducive environment for the sector’s growth.
From an investor’s viewpoint, gold has reaffirmed its status as a reliable hedge against economic volatility. While the stock market faces significant downturns due to election outcomes, the resilience of the precious metal remains evident. Despite domestic turbulence, gold remains relatively unaffected, offering stability to investors.
King Charles currency notes enter circulation for the first time. Old notes invalid now?
The Bank of England has announced the introduction of new banknotes featuring the portrait of King Charles III, marking the transition from notes featuring Queen Elizabeth. Individuals are urged to return old banknotes displaying Queen Elizabeth’s portrait as the new notes featuring King Charles III enter circulation in the UK. This makes King Charles III the second British monarch to be depicted on Bank of England notes. While the primary change is the image of King Charles III, other details on the notes remain unchanged.
The images of the notes featuring King Charles were unveiled in December 2022, following the passing of Queen Elizabeth II in September of the same year. The Bank of England clarified that the new banknotes would only be printed to replace worn ones and to meet any increased demand, ensuring a gradual introduction to the public. Governor Andrew Bailey described the occasion as historic, marking the first change in sovereign depicted on Bank of England notes. Reports earlier suggested that King Charles III previewed the notes at Buckingham Palace before their approval by the Bank of England.
2024 Election Results: 10 Key Insights into Their Impact on the Real Estate Sector
Election 2024 results impact: Real estate investors tend to become cautious during elections on account of possible policy changes, say experts The real estate sector tends to ‘slow’ down during the general elections, there are few launches and investors opt for a ‘wait and watch’ approach. Having said that, the end-users may not be directly impacted as they may decide to purchase a house as and when they find the right project in the market and the best deal that suits their pocket. Real estate investors generally become cautious when there is uncertainty surrounding election results and they anticipate possible changes to policy. There are fewer transactions and new launches during the elections, say experts, adding investors’ decisions during the elections may be dependent on the prevailing sentiment in the market, performance of the share market and even the impact the exit polls may have had on the markets. regenerate this content
