Chennai: In a rarity, bullion market is witnessing a surge in demand post-Diwali. With gold and silver prices witnessing a significant correction in the past few days, retailers are seeing demand for jewellery as well as coins going up, while the trade has started importing the precious metals more.
Usually, after Diwali, the bullion market goes into a lull. This time around, the market is vibrant again after the gold and silver fell significantly in the past few days.
Gold, which was trading at Rs 79,775 per 10 gm as on October 30, has come down to Rs 74,000 levels and silver prices, which were above Rs one lakh in the third week of October, have dropped to 90,000 levels.
“The correction is huge for both gold and silver and the buyers who were indecisive have made a plunge and this is visible in the import data coming in during the past few days. Import volumes have gone up for both gold and silver,” said Chirag Sheth, principal consultant, India Metals Focus.
According to Saiyam Mehra, chairman, of GJC, the sales have surged around 10 per cent in the past few days. The demand for coins and medallions also has gone up and he estimates that 5-6 tonnes of coins would have been sold in the past few days.
“We are seeing demand from both investors and consumers. They know that gold prices will eventually move up to Rs 83,000 -Rs 84,000 levels by next year. I am getting an unprecedented number of calls from customers who want to know the rates,” he said.
The jewellery purchases for the weddings happening in December and January too are being wrapped up during these days. Wedding purchases of silver ware too are up as is evident from the silver imports, said Sheth. According to the Confederation of All India Traders, around 48 lakh weddings are expected to be held during November-December.
Meanwhile, Senco Gold reported that it has achieved over Rs 1,000 crore in sales during the festive period which covered Navratri, Diwali and Dhanteras, among other celebrations in India.
