The bullion market is likely to remain buzzing in the current festive season. Amidst the lifting of restrictions related to Kovid, the price of gold has come down by 16.4% from the record level. Due to this, gold is getting cheaper by Rs 9,200 per 10 grams. Apart from this, the wedding season will start after the festivals, for which shopping is going on from now on.
Expected increase in the purchase of gold this festive season
In the hope of good business, jewelers across the country are also preparing. Jewelry is the biggest sale during the festive season. Meanwhile, Dhanteras arrives, when buying gold is considered most auspicious. Jewelery industry experts estimate that this year’s festive season gold sales will be up to 15% higher as compared to the same period in pre-corona, ie 2019. According to the World Gold Council, 194.3 tonnes of gold was sold in the country during October-December 2019. In the same quarter of this year, 223.1 tonnes of gold can be sold.
According to experts, due to the record rise in gold prices last year, lockdown and postponement of marriages, people were avoiding buying gold. Due to this, the last festive season was in tatters. But this year, the demand for gold for investment has declined due to clear signs of the global and domestic economy getting back on track. As a result, there is a downward trend in prices. At present, 24 carat gold in the country is priced at Rs 47,335, while last year at the time of Diwali its price was Rs 50,849 per 10 grams.
Pure gold came down from Rs 56,126 to Rs 47,335
According to the India Bullion Jewelers Association, on August 7 last year, pure gold (24 carat) stood at Rs 56,126. and jewelery gold (22 carat) Rs.51,411. per 10 grams was at a record level. On Tuesday, the price of pure gold was Rs 47,335 and the price of jewelery was Rs 43,359. per 10 grams. That is, at present gold is getting cheaper by Rs 8,791 per 10 grams from the record level.
Jewelery purchase increased at showroom, fear of third wave of Kovid reduced
Revathi Kant, Chief Design Officer, Titan Company said that this year the jewelery shopping has increased by visiting the showrooms. He said, ‘There is no special fear of the third wave of Kovid. Meanwhile, the purchase of premium range has increased significantly. We expect this season to be better than last year in terms of sales. He also said that people are showing interest in buying multiple jewelery in the same category.
Gold prices will remain low for the time being
Suki Cooper, Analyst at Standard Chartered Plc, says gold imports into the country have increased as the economy picks up. Pent-up demand also remains high. Due to lack of investment demand, the price of gold in the physical market is going to remain low.
Sales this year will be better than Corona-East
Ashish Pethe, chairman of All India Gems and Jewelery Domestic Council, has a soft trend in gold prices. There will be more marriages this year. In such a situation, the sale of gold in the current quarter is expected to be higher as compared to the same period of 2019.