15 October 2009
NEW DELHI: Mithai may have been replaced by fine chocolate and oil lamps have made way for coloured bulbs, but there are some things about Diwali that don't change. The glitter of gold has dimmed shadows of a global slowdown injecting a new bouyancy to the market as "goldaholics" step out to splurge.
Gold price is pitched steeply at over Rs 16,000 for 10 grams and silver is ruling at an all-time high of around Rs 28,000 a kg. But rather than curbing the Indian buyer, this may have spurred the trade. If the market is showing signs of overheating, the sales are not flagging.
The overall consumer mood may still be tinged with caution but if the past few days are anything to go by, gold and silver sales are likely to increase. MMTC official sources pegged the increase in gold sales at about 45%-50%. "We did business of around Rs 23 crore last year while this year we have already done Rs 36 crore of business on all products including gold jewellery, medallions and silver,'' a source said.
India Post has already sold 215 kgs worth of gold coins in the last one year. With the festival of Dhanteras on Thursday, jewellery shop owners have gold dust in their eyes and are rubbing their hands in anticipation of big purchases in the offing. Both private and public sector banks are busy peddling gold coins hoping to cash in on the festive fever. Actor Salman Khan has used the oppurtunity to launch `Being Human' coins in association with a jewellery brand.
Wholesale dealer in Chandni Chowk Vimal Goel says sales are three times higher in October than August. "Despite the high price, we have seen an increase in demand after a year's slump. Last year there was unprecedented increase in buying gold jewellery and medallions during Diwali but a sharp dip after that. People's faith in gold has been restored and demand is higher than diamond and silver this year,'' Goel said.
Speaking on the rush of buyers for the festival of Dhanteras, Tarun Kanwar of Navrattan Jewellers in GK-I said, "For most people in North India, the festival is very important and so they do come out and buy gold and silver. But these are token purchases, normally not too expensive and are restricted to coins and small tokens like a chain or earings. But on the whole gold buyers increase during the festival season."
Vikram Khanna of Khanna Jewellers in Karol Bagh said that the signs of recovery in the economy were showing in the gold market. "The number of buyers is picking up though it is not yet boom time. Sales are above average," Khanna said.
He explained that the return of buyers to the market can also be attributed to an acceptance that the price of gold is unlikely to fall and the steep rate prevailing currently could prevail for some time to come.
Meanwhile, buyers say they don't really have a choice and have to buy at whatever rate since weddings in the family cannot be postponed for gold prices. Ranjana Verma, who bought gold for her daughter-in-law on `karva chauth', said that things have changed over the last one year tremedously on the gold price front. "When I bought gold for my son's wedding last year the price was much less. But the price has increased dramatically when I bought gold last Sunday for my daughter-in-law," Ranjana said
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