As price slides, gold demand soars
Neither finance minister P Chidambaram, nor is the fear of a bad investment deterring people from buying gold. In fact, the sharp dip in prices has only brought more customers tojewellers though some are waiting for gold to slip even more.
Dismissing the minister’s plea to refrain from buying gold for the next few months, people are giving in to the lure of the yellow metal. “This is off-season for us but sales continue to be normal,” said Alok Bhattacharya, store manager of B.C.Sen Jewellers in Gurgaon. With a few months to go before the onset of the wedding season, when gold sales gain momentum , sales should be mostly stagnant now. “Some people are unaware of the dip in gold prices and the possibility of a further dip (which could lead them to postpone purchases). So, our sales have not been affected,” said Ajay Bali, store manager of Tanishq, Gurgaon.
Business at Old Delhi bazaars like Kucha Mahajani and Dariba Kalan in Chandni Chowk, too, was brisk on Saturday . Mohammad Nadeem, manager of D.N Jewellers, said: “Our sales are normal. People in this locality are not really aware of the dip in prices and the investment in bullion has not been affected .” Big stores like Nathu Mal and Sons and Shri Ram Hari Ram Jewellers were crowded as always. “This is the place to get gold. Money comes and goes but gold coins seem to be the only solid investment at this moment ,” observed Anita Nautiyal , a resident of Chawri Bazaar. Ironically, gold has proved to be a bad investment but Anita seemed to be in denial.
Parul Kolevara, a resident of New Delhi, had the look of a person who had-—what else—struck gold! She flaunted her bangles which she had bought at a lower price than she had anticipated . “Our country is suffering huge losses. I will wait for the right time because I intend to buy jewellery for my daughter’s wedding ,” said Jayant Mishra. What he probably meant was that he would wait for the prices to fall even more.
“Sales are not affected, neither are we suffering losses . This is a season of thin sales and hence we didn’t expect much profit either. Prices are expected to go down to as much as ` 2200 per gram for 24 karat gold. This is the cheapest it has been since April 2013,” explained store manager of MP Jewellers Kolkata in Gurgaon, Jayjeet Saha. “My son is getting married next week and I am looking for an engagement ring,” said Promila Agarwal, a housewife from DLF City. The Gurgaon Gold Souk had a good crowd of buyers on Friday night when the price of gold was . 2,568 per gram for 24 karat gold. Multibrand jewellery stores like Avenue Montaigne were offering discounts which found many takers.