As prices fall, investors go for gold
Gold is hot property these days. With prices dropping, gold sales are expected to pick up strongly, reports Manish Pachouly.business Updated: Aug 08, 2008 23:59 IST
Gold is hot property these days. With prices dropping, gold sales are expected to pick up strongly.
Gold, which touched Rs 13,700 per 10 grams last month, came down to Rs 11,800 per 10 grams on Friday. Prices fell over the last 20 days, mirroring the fall in crude prices and pushed down further by a strengthening dollar.
Prithviraj Kothari, director of the Bombay Bullion Association, said 35 to 40 tonnes of gold were sold across India in the last 15 days. When prices were at their peak, only eight tonnes were sold on average per month. He said prices might fall further.
Rakesh Saraf, general secretary, Karol Bagh Jewellers’ Association, said: “[On Friday], the going rate was Rs 12,100 in the morning, falling to Rs 11,800 by evening. Sales may rise over the next two days.”
The rain, though, was a deterrent for buyers in Delhi. Maninder Pal Singh, a jeweller at Chandni Chowk, said: “There wasn’t much buying today, but we hope things get better over the weekend.”
Jain said his shop, which used to be empty even during peak hours, now has at least 15 customers at any given time. “People are buying jewellery for marriages in November and December,” he said.
Neelam Jogani of Mumbai said she bought jewellery for her brother-in-law’s marriage scheduled for November. “Prices might rise by then, so it’s better to buy now.”