Should you be buying gold this dhanteras?

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Indians who have fetish for the yellow metal prefer buying gold. However, for the last few years, because of high gold prices, the sale has seen a steady decline on Dhanteras. This year too, the yellow metal has seen volatility in prices, following a sharp plunge in February just after the hike in January , when it touched ` 28,540 per 10 gm.”Gold prices have picked up steadily yet marginally since the beginning of October to stand at approximately ` 27,000 per 10 gm,” says Hasmukh Bafna, president of a jewellers’ association.
Should you be buying gold this dhanteras
“The prices will see an upswing and may hover around `26,200- `28,200 per 10 gm on Dhanteras,” adds Bafna. So, your annual ritual of buying gold on Dhanteras might hit a snag this year.There are other lucrative ornamental options that are becoming popular.
High prices are forcing people not only to buy gold substitutes like 1 gm or 2 gm gold jewellery but also to gravitate to lightweight pieces like necklaces and bangles that are popular among younger women. People are also buying gold coins but of lesser denominations, like 2, 5 and 10 gms. Silver coins, gold-plated ornaments and framed idols of Goddess Lakshmi and Lord Ganesha which fall in the price range of `5,000 and `6,000 have a higher demand.
While Diwali brings with it the season of going on a gold-purchasing spree, jewellery shop owners are in for a shock this time around. Not only has the number of buyers reduced drastically, the items on display show nothing out of the ordinary. From Dussehra onwards, the season for buying gold really picks up as many festival days fall in this period, followed by the wedding season. Even though the prices of gold have dropped by 10% when compared to last year, the sales are down by almost 40-50% this year,” adds Bafna. Besides Diwali, not many opted for buying gold items during Dussehra too, which is considered a major gold-buying festival. Jewellers are attributing the fall in demand to buyers’ expectations. Lalchand Ranawat, owner of a suburban jewellery store, says, “People are anticipating a further fall in gold prices and thus waiting for the right deal to arrive. While that might not be entirely true, the demand may rise as the festival gets closer.” The relatively fewer muhurats for the wedding season is another major cause for the drop in demand. Dinesh Jain, who has been running a jewellery shop in Andheri for more than a decade, says, “I have never experienced a low like this during festivals. Usually, my store used to be filled with people for two months at a stretch, starting Ganeshotsav. But even as we are only 10 days away from Diwali, there seems to be not enough demand.”

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