'Dhanteras' gold sales lose shine because of high prices

The gold buying spirit of Indians was dampened a bit on Dhanteras today as sale of the commodity, both by value and volume, showed a downward trend because of high prices, traders said.

By evening, estimates indicated that gold sales would be around Rs800 crore, compared to Rs891 crore last Dhanteras, they said.

Last year this day, about 5.5 tonnes of gold was sold at the price of Rs16,200 per 10 grams in the national capital, compared to Rs 19,740 today.

According to Bombay Bullion Association President Suresh Hundia, "The total value of gold sold today would touch Rs 800 crore at the end of the trade."

Dhanteras, two days before Diwali, is considered to be auspicious for making metal purchases.

"The gold sales will less in volumes due to high prices this year compared to last Dhanteras," Hundia said, adding that the combined sale of gold and silver could be around Rs1,200 crore today.

People have been heavily investing in silver despite high prices of the white metal, the Delhi Bullion Market said.

The demand for silver coins has been more on Dhanteras as their re-sale value is higher as compared to silver-wear and other items, he said.

Silver prices have skyrocketed by 37% to Rs37,600 per kg, from Rs27,500 per kg year-ago. 

Some retail jewellers in metro cities — Delhi, Mumbai, Kolkata and Chennai — said that the bullion demand has not come down on account of spike in prices.

Delhi-based Jewellers like P P Jewellers, Omsons Jewellers and others said that demand for gold and silver in smaller quantity has been more since morning.

"Most of them are buying either gold or silver coins," said P P Jewellers Director Pawan Gupta.

Mumbai-based Oron Jewellers director Avinash Pahuja said consumers are buying despite high prices, believing that gold prices may not decline to last year's level.