High gold prices fail to deter buyers ahead of festive season

AHMEDABAD/ KOLKATA/ KOCHI - Rising gold prices have no impact over the buyers ahead of the upcoming festive season of Dussera, Diwali and X’mas across the country.

According to jeweller in Ahmedabad though the price of gold is higher as compared to the previous year, they are still optimistic about doing a good business.

“Last year during these days, in the month of October, the gold rate was around 16,200 rupees for 24 carat and this year it is 19,900. So, the prices have increased to almost 25 percent this year. And in spite of the price rise, the demand has not been affected. Even the demand of gold has increased in the same percentage,” said Manoj Soni, owner of a jewellery showroom.

“The buyers know that the price will increase in the coming days, so they are buying gold in advance for the ensuing festivals. They feel that the prices will increase in the coming days as such why not buy now at a cheaper price than buying it later at a higher price,” he added.

Lucrative schemes offered by the jewellers are witnessing tremendous growth during the festive season.

Meanwhile, customers in Kolkata said that the rising prices of gold is a matter of concern for them but they have to purchase gold for special occasions like marriages and festival season.

“We have to purchase these ornaments for our necessity such as marriage ceremony, special occasions or some festivals like Diwali, Durga Puja and we purchase this gold for gifting to our friends and relatives. So, we have to purchase this gold despite the fact that its price is increasing day-by-day,” said Ruchina Khan, a customer.

Major broking houses and investment bankers are expecting a further 10 percent increase in prices of gold.

The Secretary of All India Council of Indian Association of Hallmarking Centre and President of Ernakulam district of All Kerala Gold and Silver Merchant’s Association, James Jose, said 35 percent of the consumption in India is happening during the festival period especially in north.

“35 percent of the consumption in India is happening during the festival period especially northern India. So, the price, Indian driven per se is not going to affect it of course because around 30, 40 or 100 tonnes don’t make much difference. But the general mood is goldish and considering the Indian of take also it will definitely going to have a positive impact on the prices,” said Jose.

“So, the prices are going to be upward but, of course, we have to be careful that there will be some corrections, there will be some profit taking, so you can expect a lot of volatility in the market,” he added. By Uday Adhvaryu/Juhan Samuel/Ajitha Menon (ANI)