As bullion prices lose glitter,city residents add shine with gold buys

So much so,that people did not hesitate to make purchases even during the Shradh period.

“While the perception still prevails that making purchases during Shradh is a bad omen,a number of people turned up to select their jewellery designs and make advance bookings during the last day of Shradh,as the prices came down on Monday. The sudden fall in price of gold has added to the festive spirit among people,who are also preparing for the upcoming wedding season,” said owner of K Jaipur Diamonds Jewellery House at Sector 35.

With global markets roiled by economic crisis,analysts have been predicting a rise in the cost of bullion in coming days.

“The price of the yellow metal is purely driven by demand and supply on global scale. India is certainly the largest consumer of gold but there are many other consumers in the world. With the global market scenario being gloomy,at present,people are gearing up to invest in gold—considering it as the safest haven. As all the end consumers are creating improved demands for gold,the prices are much likely to move up in upcoming weeks,” said Iqbal Singh,Managing Director of Innovation Financials.

It is not just jewellery that people are buying,even gold coin sales have seen a 30 per cent increase since Wednesday. Banks and General Post Office have recorded maximum number of sales of 10 gram coins priced at Rs 28,200 each.

“We did not witness any immediate rush in purchases at our gold coin counter on Tuesday after the fall in price was reported on Monday. On Tuesday,we recorded sale of only 10 coins with denominations of 10 gram and 20 gram. People generally purchase coins for investment purposes and they prefer waiting for a day or two for the prices to fall further. Apparently,with a slight rise of Rs 600 in gold price on Wednesday,the sales shot up. By now,we have sold more than 250 coins of different denominations including 10 and 50 gram,“ said State Bank of India Assistant General Manager N K Talwar.

In the current season,however,there has also been a shift in the choice of designs of ornaments,say jewellers.

“Most of the customers are now preferring to buy lighter ornaments unlike last year where heavier jewellery was more in demand. Instead of purchasing four different sets of 20 gram each,people now restrict to two sets or they purchase one key set weighing 25 gram and the others being lighter,” said owner of Nikka Mal Babu Ram Jewellery House at Sector 22.