Panch Tattva Wisdom

💬 On Gold and Its Relentless Rise

I am not an expert on gold, but based on my understanding of proportion and economic behavior, I’d like to share a few reflections.

Over the past two years, gold prices have nearly doubled. This surge seems driven by growing distrust about the U.S. government’s ability to manage its debt without letting the dollar weaken. Central banks across the world appear to be reducing their holdings of U.S. securities and increasing their gold reserves — a clear signal of shifting confidence.

In India, inflation has been largely under control, yet gold continues to gallop upward. Given that almost every Indian household holds some gold, this rapid rise might eventually encourage families to liquidate part of their holdings. The funds could find their way into consumer durables, property, or major life events such as marriages.

With Indian households estimated to hold about 25,000 tonnes of gold, even a small portion entering the market could have a moderating effect on prices.

These are my observations — and I would genuinely welcome differing perspectives or insights from those who follow global commodity and monetary trends closely.