Gold Price Crash or ₹1 Lakh Rally? Should You Sell Now?

Gold prices have surged to record levels, touching around ₹1.60 lakh (per 10 grams in premium markets). Investors are now asking one big question:

 

Will gold fall to ₹1 lakh? Or is another rally coming?

Let’s break this down clearly and practically.

Why Did Gold Prices Rise So Much?

Gold prices don’t rise randomly. They move based on global economic forces.

1. Dollar Strength & Global Trade Shifts

Gold and the US dollar usually move in opposite directions. When the dollar weakens, gold rises.

In recent years:

• Many countries preferred non-dollar trade.

• Concerns about the US economy increased.

• Central banks bought record levels of gold.

• When global trust in currency falls, trust in gold rises.

2. War Fears and Geopolitical Tensions

Tensions involving the US and Iran earlier created fears of wider conflict. Leadership under Donald Trump also influenced market sentiment, as geopolitical uncertainty pushed investors toward safe-haven assets like gold.

Whenever:

• War risks increase

• Global tensions rise

• Stock markets crash

• Gold usually jumps sharply.

Now that immediate war fears have reduced and global conditions look relatively stable, gold may face short-term correction.

Will Gold Fall to ₹1.30 Lakh… ₹1.20 Lakh… or ₹1 Lakh?

Yes, correction is possible.

Gold could:

• Drop from ₹1.60 lakh to ₹1.30 lakh

• Even test ₹1.20 lakh

• In extreme calm market conditions, approach ₹1 lakh

But here’s the key question:

Will it stay there permanently?

History suggests — No.

Gold corrections are normal. But long-term trends depend on:

• Inflation

• Recession risk

• Central bank buying

• Currency strength

• Global instability

If the world remains stable → Gold rises slowly.

If crises return → Gold rises rapidly.

Should You Sell Gold Now?

It depends on your intention.

If You Are a Trader

Buying low and selling high is trading.

Some traders like Sankharsh Chanda have made massive profits through disciplined strategy. But trading requires:

• Technical knowledge

• Risk management

• Emotional control

• 90% of people lose money by trading blindly.

• If you don’t fully understand trading, avoid short-term speculation.

• If You Are a Long-Term Investor

• Gold is not just an asset in India — it is generational security.

• Indian households traditionally:

• Buy gold during stable income periods

• Sell only in extreme emergencies

• Pass it to the next generation

• Gold historically protected families during:

• Economic depressions

• Currency collapses

• Banking crises

• Job losses

• It is a hedge — not a quick-profit scheme.

What About Gold Bonds?

Some investors buy sovereign gold bonds instead of physical gold.

But consider:

• Bonds depend on financial systems

• In severe banking stress, liquidity could be delayed

• Physical gold offers direct ownership

• Diversification is important.

• Global Risks That Could Push Gold Higher Again

• Several factors could reignite gold prices:

• Global recession deepening

• Large-scale job losses

• Banking instability

• Artificial Intelligence disrupting employment

• Currency devaluation

• Real estate demand slowdown due to demographic changes

• If a crisis similar to 1929 happens, physical gold becomes highly valuable.

• Important Rule: Don’t Buy on Credit

• Never:

• Take loans to buy gold

• Use credit cards for investment gold

• Buy for short-term speculation

• Buy only with surplus money.
• Consider monthly or six-month accumulation strategy.

Practical Gold Strategy for 2026

• Buy gradually
• Ignore temporary corrections
• Avoid emotional panic selling
• Hold for long-term wealth protection
• Treat gold as financial insurance

If prices fall — accumulate.

If prices rise — hold calmly.

Frequently Asked Questions (FAQ)

1. Will gold price fall to ₹1 lakh?

It is possible in short-term corrections, but long-term fundamentals support gradual appreciation.

2. Is this the right time to sell gold?

Only if you urgently need money. Otherwise, long-term holding is safer.

3. Why does gold rise during wars?

Investors move money from risky assets to safe assets like gold during uncertainty.

4. Is physical gold better than gold bonds?

Physical gold offers direct control. Bonds depend on financial institutions. Diversification is better.

5. Will gold prices rise again in 2026?

If global instability, inflation, or recession intensifies, gold can rise sharply again.

Conclusion

Gold may fall from ₹1.60 lakh to ₹1.30 lakh or even ₹1 lakh in a stable global environment.

But gold rarely stays low for long.

It rises slowly in peace.

It rises rapidly in crisis.

Gold is not for quick profit.

It is for long-term security.

If you understand this — you are investing wisely.

If not — avoid emotional decisions.

Gold remains gold. Always.