Gold crashes

Gold crashes
Highlights

Biggest fall of A Rs 1,160 in one day, Rs 3,160 in 3 days Never had it so good in the recent past Crowds...

Biggest fall of A Rs 1,160 in one day, Rs 3,160 in 3 days Never had it so good in the recent past Crowds flocking to jewellery shops Sales get a boost of 20-30 per cent Silver rate is also down. gold1Hyderabad: They never had it so good � both the jewellers and the customers! With the gold price falling further by Rs 1,160 per 10 gm to Rs 26,440 on Tuesday the jewellery shops are once again teeming with crowds of eager buyers, with the marriage season set to begin in the next few weeks. In the last four months prices have come down by Rs 5,000 per 10 grams from Rs 31,000 plus. In the last three days alone the prices fell by Rs 3,160. Along with the yellow metal, the price of silver is on a downward trend with a kg selling at Rs 45,300�a fall of Rs 2,500 in one day. The prices are generally quoted for 24 carat gold, whereas the 22 carat gold jewellery will now cost less than Rs 25,000 per tola. The main reason for gold's short-term weakness is the rise of the dollar due to the economic crisis in Europe. The dollar has also moved up on the hopes that the US economy is emerging from its crises, which could nudge the Federal Reserve to withdraw the stimulus package earlier than expected. The return of confidence in the US economy has also seen investors shifting money from safe havens like gold to riskier assets like stocks. Other reasons for falling international rates include the economic crisis in several countries, which want to sell gold, and the Indian government's decision to discourage import of gold for ornamental use. The buyers, particularly women, flocking to the jewellers once again is not surprising, considering the Indians' craze for the yellow metal. While the well-to-do are lapping the gold up---both as an investment option and for future use during functions, the middle and lower classes are wondering bothered by a crucial question---should they wait for the prices to fall further?. A cross section of the jewellers in the Twin Cities has divergent views---while one feels the falling trend will continue for at least 10 days so that people opting for buying small quantities can go ahead and swarm the shops, those intending to procure marriage purchases could adopt a wait-and-watch approach. For who knows, the price may hit another low creating more interest, both among the shop-keepers and the buyers. A beaming City jewellery shop-owner said he was obviously happy with the falling price.ion. When the yellow metal was selling at Rs 30,000-32,000 for 10 grams in the recent past he had not many customers. "With the price down to Rs 26,000 we are happy. We are witnessing rush of buyers. The sales are up by 20-30 per cent in the last couple of weeks.
Show Full Article
Download The Hans India Android App or iOS App for the Latest update on your phone.
More Stories


Top