Ashok Mittal, CEO, Emkay Commotrade Ltd says that people will buy gold tomorrow irrespective of price. He also says that he expects gold price to increase from 15% to 18% in next one year.
Ashok Mittal, CEO, Emkay Commotrade Ltd says that people will buy gold tomorrow on account of Akshaya Tritiya irrespective of the price. He also says that he expects gold price to increase from 15% to 18% in next one year. Silver, as an investment option, has not provided good return last year, but he expects silver to give positive return in next one year.
Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.
Q: International gold price at USD 1,640 per ounce. What upside do you see in gold prices?
A: People will buy gold tomorrow on account of Akshaya Tritiya irrespective of the price. In last one year, the prices of gold has increased by 30% due to depreciating rupee.
At USD 1550, we expect gold to provide good support in international market. One can buy gold at USD 1,600 level. We expect gold price to increase from 15% to 18% in next one year.
Q: In Indian markets what kind of trajectory would you see in gold prices?
A: We are expecting 15% upside in the international market. We expect 5% to 6% rupee depreciation. The overall returns in gold for the next one year should be about 20% or slightly higher. From current levels, we expect the gold price to be close to Rs 33,000.
Q: Do you see a lot of people buying physical gold or would you recommend gold ETFs at this point?
A: Many people are buying physical gold because of festivals and marriages. People who want to invest they have gone for gold ETFs or buying on national spot exchange. Mostly people who want to use it or consume still prefer to buy gold coins.
Q: Are you expecting a lot of interest in silver? What potential does silver hold as investment?
A: Silver has not given high return compared to gold in the last year. However, we expect silver to give 20-22% returns in one year.