Gold rush after price free fall
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- Published 19.04.13
|People check out gold ornaments at a jewellery showroom in Guwahati on Thursday. (PTI)|
Guwahati, April 18: Relatively upbeat over the increasing footfall with tumbling gold prices, a section of jewellers here say an element of speculation has driven many to pre-pone their purchase.
“The footfall has increased substantially. While this has primarily to do with the fall in gold price, an element of speculation is also apparent. A majority of the customers who are making a beeline to the jewellery shops are those who would have invariably purchased gold, say for a wedding or any other auspicious occasion, three-four months later,” said B.K. Soni of Manik Chand & Sons Pvt Ltd.
The price of the yellow metal has fluctuated between Rs 28,000 per 10gm on the eve of Rongali Bihu to Rs 25,500 as of today. Rising supply and a subsequent rate slash in the international market has led to the retail price dip.
On whether the rates would dip further, Soni said, “It is difficult to predict as the market is volatile. But business wise, it might not make a difference as the demand would again come down once the price level goes up.”
While the Fancy Bazar outlet of Manik Chand was chock-a-block, long queues were noticed at nearby Tansukhrai Ratanlal Jewellers since morning. “The rush has been heavy since yesterday and I would term this a healthy trend. While increasing sales help our cause, the customer gets his or her share of gold at a lower price,” said Sahib Jain of Tansukhrai.
The scene was not too different at L. Gopal Jewellers. “The footfalls have risen four times in the past few days. I would attribute this to rate cut and the festive season. But we have only witnessed purchases of light items as of now,” said Gokul Soni, proprietor of the outlet at Fancy Bazar.
Small-time jewellers are a little circumspect on the “rare trend” as they feel the price dip will eat into their profit margins. “We have been in this trade for quite some time now. This is a trend not seen for years. The 10 per cent fall in price will mean a loss of about Rs 400 in making cost,” said A.K. Roy of Matri Gahanalaya in Panbazar.
As for the “wedding shoppers”, many are laughing all the way to the jewellery shop.
“I am elated with the price dip. It has come at the right time as my sister is getting married in November. We purchased some bangles today and are planning to buy the main sets this week itself,” said Gitanjali Kalita, a resident of Maligaon.