Anticipating a rise in gold prices, city residents have begun making a beeline for jewellery shops to purchase the yellow metal.
After hitting an all-time high of Rs 32,950 per 10 grams (tola) in November, gold prices touched a 15-month low of Rs 25,500 on April 19 before stablising around Rs 27,000 this month.
With gold prices expected to increase, many in the city have started making advance purchases for the approaching wedding season, when the precious metal is at its highest.
A city-based jeweller said he expected the demand to continue throughout the month, saying that many were also purchasing the metal as an investment. “But people are also purchasing gold due to the approaching wedding season,” said Ashok Sharma, the owner Akash Jewels in Sector 22. He claimed that customers to his shop had increased by 70% in the past week.
A Sector 15 resident said this was the right time to buy gold jewellery. “My daughter's wedding is in ******. And, as the prices have decreased, I felt it was the right time to buy gold,” said Amrit Kaur, a resident of Sector 15.
Compared to coins, buyers are opting to buy gold jewellery this year. Also, Akshay Tritiya, a Hindu festival which is considered an auspicious day to buy the yellow metal and fell on Monday, also helped increase gold sales in the past week. “Yesterday, several customers bought gold jewellery, though there weren't many takers for gold coins,” said Sandeep, owner of Maharani Jewellers in Sector 22. “We are looking forward to make a profit.”
Meanwhile, India Post, too, on Tuesday announced a 7.5% discount on gold coins sold at post offices.
The gold trail
After hitting an all-time high of Rs 32,950 on November 26, 2012, gold prices have stabilised this year. Though it remained above the Rs 30,000 mark till February, the yellow metal hit a 15-month low of Rs 25,500 mark on April 19, before crawling back to Rs 27,000 this month
January 15 Rs 30,859
February 15 Rs 30,150
March 15 Rs 29,360
April 15 Rs 25,705
April 19 Rs 25,428 (15-month low)
April 30 Rs 27, 500
May 14 Rs 27, 200