Gold rush in Ahmedabad, month of 'Shraadh' notwithstanding

After further correction in bullion on Tuesday, gold prices fell to around Rs25,600 per 10 gram in Ahmedabad. The lower prices have attracted customers by the hoards

resulting in sell-out of 10 gm (99.5%) gold bars or coins in the city.
Increased demand was seen inspite of this period being the Shraadh month, the most inauspicious time to buy assets of any kind, including gold. Investors are making full use of the price benefit with almost every jeweller in the city witnessing mad rush for gold over past couple of days. 

"There was a rush for gold coins on Monday. Demand was sustained on Tuesday in spite of the inauspicious period to buy gold," said Manoj Soni, director, AB Jewels.

Gold prices in Ahmedabad dipped to day's low of Rs25,800 per 10 gram before closing higher at Rs26,500 per 10 gram for 99.5% purity. Gold of 99.9% purity closed at Rs27,200 per 10 gram. Silver metal rose by Rs5,000 per kg, ending the day at Rs56,000 per kg in Ahmedabad.    

According to Soni, people have become more price conscious this year. "It does not matter whether the time is right to buy gold. Investors are always on the lookout for an economical deal," said Soni.

The rush was expected, said city-based bullion trader and analyst Girish Choksi. "Rise in number of buyers was expected after gold prices touched Rs26,000 levels. Traders had not expected such huge correction in prices, hence the lack in number of gold coins and bars," said Choksi. 

Many jewellers in the city have booked gold bars but deliveries to consumers will happen only after two days. "As of now, we do not have any 99.5% pure gold bars.

However, customers can book it now but deliveries will be made only after two days at a premium of Rs1,000," said an official of TBZ requesting anonymity.