Gold rush in Gujarat despite Shraadh

Team DNA.

Ahmedabad/Vadodara/Surat/Rajkot: Gold rush has gripped Gujarat  as prices of the magical metal have been falling. Long term investors as well as domestic purchasers have set the market on fire.

Estimates suggest that gold sales shot up during the past two days from a sluggish average of 400 to 500 kg per day to over 1,500 kg per day - a record increase of over 1,000 kg per day. And all this in spite of the inauspicious Shraddh Paksha, during which people here usually  prefer not to buy gold.

The prices of gold 10-gram standard decreased as the prices which were more than Rs10,000 recently closed at Rs8,900 on Wednesday. Traders have been taken aback by the fact that the gold trade has increased during Shraddha.

The lure of buying the yellow metal for long term investment, while it comes cheap is the reason, believe traders. “Whenever prices go down, people rush to buy gold and invest,” explains Girish Choksi, president of Choksi Market Association of Ahmedabad. 

Meanwhile in Rajkot, within two days the gold trade increased by 300 kg, informed Munna Mandaliya, owner of a jewellery shop. The common man also wants to make a killing so consumers are swarming at jewellery shops.

Ashwin Chokshi of Narayan Jewellers in Vadodara, said, “Around 20% increase was witnessed in daily trading and is expected to continue for few days”

He also said that currently gold price is going down and is likely to touch Rs 8,500, but is expected to touch the Rs10,000 mark during Diwali. At Narayan Jewellers the current gold price was Rs8,800 on Wednesday.

Another leading jeweler on RC Dutt Road, Gopalbhai Soni of Mukt Jewellers, said, “The consumer rush was quite visible as it crossed over 30% of our daily retail trading.”
Even in Surat, shoppers thronged shops to buy gold jewellery at lower prices.

“The demand picked up slightly on Monday, but further fall in the gold prices during the last two days, has resulted in a much higher rush of customers,” said Vikas Juneja of Bhimji Jewellers.

Yet another Surat based jeweler Akshay Choksi of Aavkar Jewellers said, “People realise that gold prices are set to increase in view of strong demand in the forthcoming marriage and festival seasons. The buying is only to take advantage of the falling prices.”  Gold rush in Gujarat despite Shraadh.