Business Today: Gold Hit Record High; Silver's Bull Run Yet to Start: Report
Article by Basudha Das in Business Today
Gold’s rally may still have legs despite hitting an all-time high in 2024, as central banks continue aggressive buying and global reserves shift away from the US dollar, according to DSP Mutual Fund’s latest Netra Report.
The report noted that central banks have been purchasing close to 1,000 tonnes of gold annually since 2022, soaking up more than 25% of global mining supply each year. DSP cautioned that the gold market lacks the depth to absorb large inflows without price disruption; even a modest 5% reallocation of global forex reserves into gold could trigger a prolonged and significant price surge.
In 2024, gold achieved a major financial milestone -- it broke past its inflation-adjusted peak from the 1980s, setting a new real (inflation-adjusted) all-time high. This makes gold not just a historical safe haven but a current outperformer, firmly cementing its position in the portfolios of central banks and institutional investors alike.
Meanwhile, silver, often referred to as “poor man’s gold,” remains significantly below its .....