Thursday, October 15, 2015
Gold ornaments a craze this festive season
If the trend in the city is any thing to by, the sale of light gold ornaments will take over that of bullion this festive season.
Light jewellery for ornamental purpose is more in demand than long term investment in gold.
Ravindra Nath Rastogi, president of Lucknow Saraffa Association, said, "People are only buying required amounts of gold for weddings and festivals but are hesitant in making big investments in the yellow metal mainly because of the uncertainty over gold prices." He explained that people were in the `wait and watch' mode hoping for prices to fall further for hoarding bullion. India imports gold mainly from Israel, South Africa and Switzerland. Gold traders say China has announced to export gold to other countries soon. Hence, India may soon be over supplied with gold, resulting in steep fall in prices."This could happen anytime. Be sides, the rupee is gradually attaining stronger value in the global market hence most investors are waiting for prices to fall further," said Rastogi.
The buying patterns, however, show more inclination towards lighter ornaments like earrings, rings, bangles and chains apart from the must-buy traditional jewellery for wedding. Silver, too, has very few takers this season because of the constant decline in prices over the past few years. The rate of silver is Rs 35,800 kg this year, a steep fall from last year's price of Rs 42,000-45,000kg. Four years ago, silver prices had shot up to Rs 70,000kg, after which it has been constantly falling now. This has led to a major loss for silver buyers.
Courtesy: The Times of India