Amdavadis now sell gold worth Rs 30 cr daily

AHMEDABAD: Amdavadis are finding the high prices of gold too hard to resist. And who is talking of buying? An astounding 200 kg of gold, worth roughly Rs 30 crore at current prices, are being sold every day by families cashing in on their treasures.
The selling spree started last Tuesday when the prices of gold touched Rs 15,000 per ten gram and climbed to a crescendo over the weekend as prices kept rising.Jewellers are still counting the jewels, coins, biscuits and bars they have raked in.
���These seem very good prices to sell gold and invest elsewhere. I don���t see any significant upside from here,��� said businessman Dilip Patel who sold gold bought at Rs 4,500 per ten grams just ten years ago. He intends to use the money in his business where he is facing a liquidity crunch.
Some other big sellers have dumped gold worth crores, which their families had accumulated over three or four generations, to meet other requirements. But it is not just distress selling. Many families feel that bank deposits in India today look more attractive than gold as an investment.
���Almost 95 out of 100 customers that we get nowadays are coming to sell. We have never witnessed such a reverse gold rush,��� said Manoj Soni of AB Jewellers. Sellers get paid Rs 500 less than the prevailing rate per ten grams.
���Some of my customers are opting for cash in on the expectation that they will buy jewellery once the prices dip to a realistic level,��� said Virjibhai Zaveri of Zaveri and Co.
With gold futures prices crossing Rs 16,000, prices have jumped over 40 per cent in last four months. International gold futures have crossed the $1000 per ounce given the bleak economic outlook.
���Ahmedabad market is mostly driven by recycled gold. People find it easy to sell coins, biscuits and bars but at current price levels they are also selling off old jewellery,��� said Monal Thakkar of bullion firm Amrapali Industries.