Gold sales jumped over 50 per cent on Sunday due to the overwhelming response from buyers on the auspicious occasion of Dhanteras.
Dhanteras, a day in the Hindu calendar which ushers in the festival of lights, celebrated with the purchase of precious metals as a form of good luck.
An estimate said the gold sales in the country on Sunday was 90 tonnes as compared to 60 tonnes on the same festival day last year.
“Although we are yet to collate data of the total sales in the country, the preliminary response indicates healthy sales during Dhanteras,” said Ajay Mitra, managing director - Indian sub-continent, World Gold Council (WGC).
Emphasising the boost in sales, Mitra said the HDFC Bank set a record this year while the recently introduced gold sales through India Post surged 9 times to 9 kg from the average daily sale of 1 kg. Mitra estimates that gold imports in the current quarter (October-December) will double to 108 tonnes as against 54 tonnes in the comparable quarter last year.
He attributed the spurt in sales to the financial market meltdown and extensive promotional efforts.
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“Gold has offered double digit (11-12 per cent) returns in the current decade when all other asset classes are turning into red,” said Ashok Minawala, chairman of All India Gems & Jewellery Trade Federation.
The huge customers’ turnout changed the entire perspective towards global economic crisis and for a moment, customers forgot high volatility across all commodities in the recent past, Minawala added.
Prithviraj Kothari, director of Riddhi Siddhi Bullion, however, said the current lower prices was an added advantage to sales on the day.
Buyers were attracted mainly because of range-bound prices of the yellow metal in the last three days, said Bhargav Vaidya, a bullion analyst with B N Vaidya & Associates.
After hitting the high of Rs 14,105 per 10 gm on October 10, gold slumped to Rs 12,030 on Dhanteras.
“Customers’ turnout was beyond expectations. The demand of gold coins and biscuits was double than the supply. We managed to supply only half of customers’ demand. Orders to deliver the rest have been placed for Tuesday, the day of Diwali,” said Vipul Soni of Vipul Jewellers in Virar, a western suburb of Mumbai.
Gold falls by Rs 200 on eve of Diwali
Following selling by stockists sparked by a weakening trend in the global market, gold prices fell by Rs 200 to Rs 12,010 per 10 gm in the national capital on the eve of Diwali festival on Monday.
Standard gold and ornaments lost Rs 200 each at Rs 12,010 and Rs 11,860 per 10 gm, respectively, while sovereign was down by Rs 50 to Rs 10,450 per piece of eight gm. Silver ready fell by Rs 500 to Rs 16,400 a kg and weekly-based delivery by Rs 470 to Rs 16,280 a kg.