Sale of gold, jewellery up 20% on Dhanteras

Shiv Kumar

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Tribune News Service

Mumbai, November 9

Customers made most of falling gold prices on Dhanteras today by buying jewellery made of yellow metal in large numbers.

According to the gold trade, sale of jewellery rose by as much as 20% today while there was robust demand for coins and biscuits as well. “Falling prices of gold has seen demand going up as many customers are coming to buy jewellery,” Amit Soni, a jeweller from Mumbai’s Zaveri Bazaar, the country’s main hub for the gold trade, said.

The price of gold is at multi-year lows with 10 gm of the yellow metal at Rs 26,100 in Mumbai today. Gold prices have fallen sharply in the past few months after touching a high of Rs 30,000 per 10 gm some two years ago.

According to jewellers, many customers who had booked gold jewellery a month ago were left disappointed since the price of the yellow metal had declined recently. However, those investing in gold used the opportunity to buy additional quantities, according to jewellers.

In many places in Mumbai, jewellers waived making charges to attract more customers on the occasion of Dhanteras. “We have waived making charges for gold jewellery weighing 10 tolas or more,” said Asit Raikar, a jeweller from Borivali in suburban Mumbai.

According to the trade, the Narendra Modi government’s moves to sell gold bonds bearing an interest of 2.75% per annum has received lukewarm response from the public. People are interested in buying physical gold, traders say. However, gold coins bearing the Ashok Chakra being sold by outlets of the state-owned MMTC is receiving good response, say sources.

Gold and silver coins are seeing good response from buyers this year, according to the Bombay Bullion Association.