Gold Jewellery Not a Wise Investment, Warns Kotak Institutional Equities MD; Silver Prices Hit Record High
Sanjeev Prasad, Managing Director and Co-Head of Kotak Institutional Equities (KIE), has cautioned that investing in gold jewellery is not a financially sound strategy. He advised investors to opt for gold ETFs or direct investment in gold coins and bars, which offer better value and liquidity.
Gold Jewellery Loses 30-40% Value Immediately
According to Prasad, the resale value of gold jewellery is only 60-70% of the purchase price. This depreciation occurs due to:
- Making charges - Wastage - Precious stones and diamonds that do not retain value - Alloy composition in jewelleryHe noted that diamonds-often a large part of the jewellery’s price-perform poorly and further reduce the asset’s investment worth.
Prasad warned that gold prices must rise by at least 25-30% for jewellery buyers to break even. However, he stated that such a price surge is unlikely in the near future.
Indian Households Hold $2.1 Trillion Worth of Gold
Between FY2011 and H1FY2026, Indian households purchased nearly $500 billion worth of gold and precious stones, far exceeding the $200 billion that foreign investors pumped into Indian equities during the same period.
The total value of household gold holdings in India has surged from $694 billion in FY15 to $2,113 billion by FY2025. Despite this massive accumulation, Prasad emphasized that gold cannot deliver significant long-term returns.
Silver Prices Soar to Record High
In contrast to gold, Prasad predicted a strong uptrend in silver prices, which have already reached historic highs globally.
Today`s Prices in Chennai
24K gold: ₹13,069 per gram
22K gold: ₹11,980 per gram
18K gold: ₹9,995 per gram
Silver: ₹192 per gram; ₹1,92,000 per kg
Internationally, silver crossed $56 per ounce, hitting $56.455, driven by strong investor demand and expectations of an upcoming US Federal Reserve rate cut.
Silver Futures Hit All-Time High on MCX
March 2026 futures surged by ₹9,497 per kg (5.72%) to a record ₹1,75,484
December contracts climbed to ₹1,72,099, surpassing the earlier peak of ₹1,70,415 recorded on October 17, 2025
Rising demand for metals and optimism around monetary easing have intensified the rally in silver.
