Gold goes bling bling!
After gold price fell by a couple of thousand rupees today, people started making a beeline for the yellow metal, writes Namya Sinha.india Updated: Oct 25, 2008 20:19 IST
As the news spread that the price of gold has fallen by a couple of thousand rupees, people started making a beeline to buy the yellow metal, giving a boost to Dhanteras shopping.
It seems to be the only warm thing in an otherwise thanda Diwali this year. The economic slump and the resulting weak bonuses have dampened the festive spirit this year. The fact that just days before Diwali, Delhi roads were not jammed with cars packed with Diwali gifts was proof that everyone was feeling the pinch.
Gold, too, had seemed beyond reach with its price breaching the Rs 13,500 mark, so when the price fell, people headed out in droves to buy as much as they could afford. The rush is not just because of Dhanteras, but also because gold seems to be the best investment in the current climate.
The MMTC office in Scope complex was buzzing with people. MMTC sold 24 kilo bars of gold in one day. Chief general manger, publicity, MMTC, Preeti Kaur said, “The madness is always there before Dhanteras and Diwali, but this year due to the sudden price fall, people are going mad over buying gold and silver medallions, jewellery and silverware.”
Rahul Gupta, MD, P.P. Jewellers, said, “The price of gold has fallen from 12,200 to 10,900. Sentiments are positive and people are coming out and buying jewellery and gold for the festive season.”
The slump in the market and the high gold price had so far been a deterrent to festival-driven sales, but now the picture is much brighter.
“The gold fever has caught on,” said PC Jewellers MD Balram Garg. “If we had 10 customers coming earlier, we have 100 coming now. The market has picked up.”
People who regularly indulge in buying and selling of gold made a neat profit when the price of gold hit Rs 13,800. Now they are buying with a vengeance waiting to hit jackpot again.
Abhishek Jain, director of Leela Jewellers, said, “Everyone is aware that the low price of the gold is not permanent; it will increase again. So they are playing safe and buying gold. Also, from investing in the share markets, they have shifted their focus to the bullion market.”
“I’ve been waiting for the gold price to come down to a point where I could afford it!” said Ivy, a writer, talking of her Dhanteras shopping plans. “I’ll buy now before it goes up again.”
Sangeeta Bohra, who had been shopping for her daughter’s wedding in December, had so far not been happy with the high price of gold. But the recent price drop has put the smile back on her face. Back from a shopping spree, she said, “I’m ensuring that I buy enough so that I don’t get stuck again if and when prices rise. I’ve even bought gold bars — if I need to, I can turn them into jewellery.”