Gold scaled to a new peak of R34,500 per 10 gm in Mumbai and R34,650 in Delhi on Wednesday but many shops in the capital were selling the precious metal at R31,000-33,000 per 10 gm. Sources said some of it could be smuggled gold.
“We are still selling it at R31,500 because our supplier costs are low. Once they raise their price, we will increase our rates accordingly,” said a spokesperson at a leading jewellery store in South Extension.
In some smaller stores in the city’s Karol Bagh and Kotla Mubarakpur areas, gold was being sold at R31,000 per 10 grams.
“There are different rates for different purity of gold. Anyone who is selling at a rate cheaper than the official, is selling at a loss. Alternately, it could also mean that the gold is impure,” said Toshik Anand, who runs Anami Jewellers in Lajpat Nagar. Most jewelers advised customers to buy hallmarked gold to ensure quality.
Gold smuggling has resumed after a long gap following the imposition of a 10% customs duty.
“Global tensions have raised the safe haven appeal of gold but it can move both ways going forward,” said Naveen Mathur, associate director, commodities and currencies, Angel Broking.
“Those having investment outlook of 3-5 years should invest through SIPs (systematic investment plans) rather than investing money at one go,” he added.