Gold prices falling to a new low could not have come at a more appropriate time for Shiney Nazareth, a banking professional who is getting married in November.
Gold prices falling to a new low on Monday could not have come at a more appropriate time for Shiney Nazareth, a banking professional who is getting married in November.
"I had bought some jewellery as soon as the prices fell during the shradh period earlier this month. And now thanks to further reduction in prices, I am buying more gold for my wedding," she said.
As news of the price reducing by Rs600 spread, customers rushed to jewellery shops to buy gold. "This is the right time to buy since prices are low and are expected to climb up," said Vishwas Kumar, a civil engineer, who bought gold bars from a shop in Zaveri Bazaar. Kumar is sending his son for further studies in the US and plans to sell off the gold for a profit once the price rise.
The country is said to be the highest private gold consumer in the world since buying and selling of the yellow metal is the most favoured form of investment in middle-class families.
"Most people would rather stock up on jewellery or bars instead of investing in fixed deposits or mutual funds since gold prices keep rising and rarely crash," said Kanjibhai Shah, who owns a jewellery shop in Chira Bazaar.
Some feel that the commodity is risky to be kept at home and are looking to invest in gold bonds or equity traded funds. Ruchi Mehrotra, 27, marketing professional from Bandra is one such person.
"I normally have two ways of investing in gold — buying gold bonds and bulk gold as commodity. Buying bonds is through the SIPs route and the price change will not affect it that much. It's the bulk buying that I intend to do now during the Diwali and this fall has come at a good time," she said.
However, jewellers across the city said the gold rush on Monday was hampered by the fact that most people don't buy during the ongoing shradh period which ends on Tuesday.
"There was a bit of a rush in the morning and afternoon. But the prices are volatile and most of the buyers and investors are playing it safe and not hastening to buy," said Ravikant Jain, a jewellery shop owner at Andheri.
Those hoping to sell their gold are waiting for the prices to stabilise. "I wanted to sell my jewellery and give part of the money to my son who is starting a small business. But I guess that will have to wait till the prices climb up again," said homemaker Sunaina Verma.
However, jewellers and gold dealers are confident that there would be no long-term consequences of the slide in prices. "Things will be back to normal once the festive and wedding seasons begin in October and the demand goes up," said Vasant Jain, a private gold dealer with an international bank. Jain estimated that gold prices will rise up to Rs30,000 per 10 gm by Diwali.
(With inputs Ashutosh Shukla)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}