Keeping pace with the surging Indian stock markets, the bullion market in Lucknow is set to post record sales around Diwali this year.
Although, gold prices have been ruling high over Rs 20,000 per 10 gm, it has failed to deter shoppers from buying gold jewellery and coins in the festive season.
Since the day of Dhanteras, 300 kg worth of gold jewellery and coins have been sold by the jewellers, banks and post offices in Lucknow. “This figure is likely to touch 350 kg by tomorrow,” Chowk Bullion Association general secretary Vinod Maheshwari told Business Standard.
Besides, 700 kg of silver items, including jewellery, utensils and idols, have also been sold.
“People know fully well that gold would always remain a safe asset class. In fact, the sale this year has almost doubled over last year, when the sale of gold was below 200 kg,” he said. Last year, gold prices were hovering around Rs 16,000 per gm around Diwali.
The jewellery shops are giving discounts and bargains to attract shoppers, while the closing time of the outlets has been extended to allow maximum footfalls.
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As several public and private sectors banks have forayed into selling gold coins of various denominations, they are giving tough competition to the traditional jewellers in the bullion trade.
Despite the fact that a 10 gm gold coin is about Rs 1,000 dearer across a bank counter compared to a jewellery store, people are not complaining due to the trust factor.
“We have received a good response from the people, since we guarantee purity in our gold coins,” Punjab National Bank (PNB) senior manager (marketing) J P Agarwal said. Gold coins of 5 gm and 10 gm denominations are the most popular.
Major bullion markets in Uttar Pradesh are Lucknow, Kanpur, Agra, Allahabad, Meerut and Bareilly.