Yellow metal trades at All-Time High; Silver Sees Rs 95 spike on single day at Rs 1135 per tola

The yellow metal - Gold again hit a new all-time high in the Nepalese market today.

According to the official website of the Federation of Nepal Gold and Silver Dealers' Association, fine gold is being traded at Rs. 94,000/- per tola. Similarly, tejabi gold is being traded at Rs. 93,560/- per tola.

Meanwhile, silver is being traded at Rs. 1,135 per tola. This is one of the highest one-day hike silver gained in the Nepalese market.

This massive price hike of gold and silver in the Nepalese market is in sync with the international market.

Gold futures surged to an almost nine-year peak and silver touched the highest since 2014 in the international market. Additional cases of Coronavirus in many countries have created fears of an even brutal global recession. Thus, investors are flocking to safe havens, i.e. precious metals.

Silver, used in manufactured products ranging from solar panels to electronics, is getting an added boost due to the possibility of huge industrial demands soon.

This happens because the economies of the world suffer at times of financial crises. As a result, they will take various measures to ease the pain. This might also mean injecting cash into the economy if required. But no matter what the central banks of the world do, the chances of currency inflation are high.

Because of that, normal people are afraid of keeping their wealth as currency notes of a country since these currencies will lose purchasing power if they are inflated.

As a result, people will want to hoard more of the wealth that will keep its value. In other words, people will want as much gold and silver that their money can buy.

Now, by the law of supply and demand, these precious metals will naturally witness a price hike. Since their quantity is limited, the only way to get the amount of gold and silver you want is to pay higher to those who have it.