Three days after gold prices dropped below Rs31,000, people are flocking jewellery stores much before Dhanteras and Diwali.
“The prices dropped at the right time and people are hurrying to buy. However, this doesn’t mean people will stop buying gold, come what may,” said Kumar Jain, who runs Umedmal Tilokchand Zaveri store.
He said the demand is here to stay till February. “The peak wedding season is from November to February. The last three days saw more than double the customers because of the sudden drop in prices.”
The demand is for antique jewellery collection and also designer jewellery studded with a lot of kundan and stone works. Umdemal is offering 25% off on making charges this Diwali.
Although there is a general anxiety about gold prices on a daily basis, it never deters customers from buying gold.
One of the store managers of Tribhovandas Bhimji Jewellers, Rahul Thakkar said: “Gold is compulsion buying in Indian culture, no matter what the international prices are.” He added that the demand for Kundan work and temple jewellery collections has increased.
“This Diwali, we are offering a 50% discount off on making charges,” added Thakkar.
Asha Bhandary, a gold aficionado, said: “The buying power of people has increased and there is never a good time or a bad time to buy gold. Who knows? The prices may go beyond 40,000. So why wait?”
A shopkeeper at Karsandas Lakhman Javeri said: “The demand for diamond may fall but not gold. The yellow metal has a lot of religious value. While 20% is bought for festivals, 80% is for weddings.”