Flavour of Dussehra adds glitter to gold as demand soars

While the prices of the yellow metal are touching new heights everyday, the ever-increasing cost of gold did little to deter buyers on Dussehra.

According to an estimate, around 100 kg gold was sold in the city on Sunday. What's more, a major part of the demand came from real buyers, as gold jewellery was in greater demand than gold bars.

In Ahmedabad district, gold sales were expected to be in the range of 125 kg to 150 kg on Dussehra. True to the expectations, Ahmedabad witnessed gold sales of  90-100 kg, said Manoj Soni of AB Jewels.

Investors, who usually buy gold on occasions such as Dussehra and Dhanteras, were seen buying gold jewellery instead of gold bars, he said.

"The high prices have compelled people to buy gold in lesser quantities, and as a result, buyers were more inclined towards jewellery on Dussehra," said Rajnikant Choksi, director of Choksi Mahajan Association of Ahmedabad.

On the other hand, the sales of silver went down by around 50%, mainly due to higher prices. Choksi reasoned, "Gold has higher recycle value than silver, and that is why people buy gold even when the prices are at peak." 

Soni said that the volume of sales on Dussehra is the accumulated sales of four-five days. "Many people book their jewellery in advance and then buy it on an auspicious day. Dussehra, Dhanteras and Pushya Nakshatra are three such occasions. It may look like business of one day alone, but it is actually the cumulative business of several days," he said.