Festivals fuel gold rush in City
IT IS for the second time consecutively that the two biggest festivals of Indian sub-continent - Diwali and Id are occurring within four days of each other and the Sarafa market loves it.india Updated: Oct 19, 2006 17:59 IST
IT IS for the second time consecutively that the two biggest festivals of Indian sub-continent - Diwali and Id are occurring within four days of each other and the Sarafa market loves it.
With the prices of gold and silver almost the same as last year, the City jewellers are expecting good business like the previous year. However, the major boom will be witness on the auspicious day of Dhanteras on October 19, as major buying of gold and silver is done on the day, as per Indian traditions.
Almost all markets in the City, and particularly the jewellery outlets, are in a buoyant mood. Transactions to the tune of crores of rupees are likely to take place in a single day. In fact, the day of Dhanteras registers the highest turnover - both in terms of sales volume and business - on a single day in India.
The bullion market in particular has special relevance, as the occasion of Dhanteras - two days before Diwali, brings vibrancy in the bullion market due to its ritualistic significance. Wearing a bridal look, shops across the State capital can be seen chock-a-block with customers, because for traders the customers are akin to ‘Laxmi’ – the goddess of wealth and prosperity.
With festivals of Diwali and Id round the corner, large crowds – both from urban and semi urban areas - especially women clad in saris, burqaas and designer clothes, can be seen bargaining with goldsmiths and jewelers at Sarafa market. While, Dhanteras and Diwali purchasing largely revolves around coins, jewellery buying also takes place. This time along with designer jewellery, traditional ones would be in demand. Traditional items like Lakshmi Haar (necklace), gold chain, bangles, tops and pedants are on display.
“Diamond is in vogue now, and as the purchasing power of people has increased over the years, diamond and gem-studded ornaments will be in demand,” feels Shashi Agrawal of Agrawal Jewellers, who also owns an exclusive showroom dealing with branded diamond jewellery.
While, the price of gold was Rs 8,850 per 10 gm on Wednesday, silver was Rs 7800 per kg. “While, Diwali is for Hindus, Ramzan is the auspicious month (Barkaton ka Mahina) for the Muslims. So, due this ‘Ganga-Jamuna Tehejeeb’ the market expects at least some positive response, and there’s undoubtedly a growth in business,” opines Navneet Agarwal of Sarafa Bazaar. He said women from Muslim community go for traditional items like Champakali, Gulubandh and Bajehi from the Begums’ era.
Entry of branded jewellery like Tanishq has created a niche for Hallmarked products. Two new generation banks – HDFC and ICICI - are into selling of gold bars. HDFC Bank is providing its customers with ‘Mudra pure gold bars’ of 5, 10 & 50 gms through its branches in the City. Similarly, ICICI offers bars weighing 2.5 to 50 gms. According to a source, the HDFC Bank is reported to have sold around 1,500 gold bars in ten days in MP. “The demand is more for the 5 gm one,” the source said. The bank expects to sell about 1,000 bars on Dhanteras.
“Like every year, this year too, we’ve introduced new designs in traditional ornaments, including diamond studded ones. We also deal with gold coins from 5 to 100 gms,” said Alankar Jewellers’ Narendra Singhal.
Be it due to tradition or the ‘glamour quotient’ of the metal, the gold market is expected to hit the bull’s eye despite high prices this Diwali and Id.