With the yellow metal touching an all-time high on Tuesday, investors are shifting their focus to silver expecting it’s prices to climb further tracking gold, jewellers said today.
Jewellers said people who just want to invest in precious metals have started buying silver instead of gold, but consumers who want to buy jewellery have not shifted from gold.
“Our sales of silver coins and biscuits have gone up from Tuesday. Raw silver sales have risen by at least 30 per cent from any normal day, while gold coin sales have declined considerably,” said Hiren Soni, a city-based jeweller and a member of Manekchowk Suvarnakar Mahajan, a jewellers’ association here.
On Tuesday, pure gold (.999) prices here opened to an all-time high of Rs 16,720-16,740 per 10 gm and touched the price of Rs 16,900 during the day. Gold is today quoted at Rs 16,810-16,850 per 10 gm here.
“Since August, silver prices in Gujarat have risen to Rs 27,000 a kg from earlier Rs 22,000, a rise of 22 per cent. While gold prices have risen only 8 per cent in the same period,” said Haresh Saholiya, a Rajkot-based jeweller and a bullion trader.
He said spot silver prices were likely to rise to Rs 30,000 a kg end of this month, a rise of over 11 per cent from current prices, while gold is likely to climb to Rs 18,000 per 10 gm, up only 7 per cent.
Silver was trading here in the spot market at Rs 27,350 a kg, up from Wednesday’s close of Rs 27,000. “Silver seems lucrative as of now for the investors, but those who want to buy jewellery for the ongoing wedding season have not shifted to silver,” said Manoj Soni, owner of city-based AB Jewels.
Jewellers said currently sales of gold jewellery were down sharply, despite the ongoing wedding season. “Gold jewellery sales are down by 40-50 per cent after the sudden price rise. However, sales of raw silver have gone up 30-35 per cent as it is likely to give more returns,” said Balvantrai Badani, president, Rajkot Gold Dealers’ Association.
