All-time gold high slows down buyers

CHANDIGARH: The day seems to have brought all the bad news when it comes to prices. Besides diesel, gold prices too touched an all-time high of Rs 32,900 per 10 grams on Friday, with the yellow metal witnessing an upward trend internationally. The rate of gold in the city was stable till August 20 at Rs 29,300 but has been increasing since then.
Consistent increase in price of gold has severely impacted the demand for coins and bars, with most jewellery retailers claiming a decline in investor appetite.The increase in price is also causing a lot of consumers to their precious metal. The trend is more visible in the unbranded sector, with retailers claiming a near 10% increase in customers opting to sell or exchange old jewellery.
“When a customer visits us, we first ask him if he has come to buy or sell it — these days people rarely buy – everybody seems to be interested in only selling it,” said Harbinder Kumar Handa, a jeweller from Sector 15.
“There is a fall of nearly 22% in the demand for gold bars and coins due to the rise in prices,” reports Vikas Kumar, a Sector-17 based jeweller.
H S Kapoor, owner of a jewellery shop in Sector 37, feels this is the best time for short-term gains. “Usually, gold prices stay around 28k-30k and a drastic price decline is highly unlikely. So even if you are losing Rs 500-1,000 per 10 gm, it would hardly matter because you will eventually be the owner of that 10gms of gold," Kapoor said.
“With the increasing rates of gold, a day might come when we are just left with stories of gold for our grandkids. Nobody will be able to afford it by then,” said Sumita Banta, a resident of Sector 11.
As for those planning for wedding, the hike has taken a huge toll on their plans. “I had kept a certain amount of money for my daughter’s wedding jewellery, but because the rate of gold has increased I now feel I will hardly be able to buy anything for her," said Kanchan Chauhan, a resident of Sector 10.
“We had planned on gifting gold coins to our close friends and family on our 25th marriage anniversary, but changed our minds looking at the high rates of gold. I guess now we’ll have to settled for silver coins instead" said Rajesh Dhir, a resident of Sector 15.
“I was planning to buy all of my wedding jewellery from one place thinking that I might get a good discount but unfortunately I didn't get any as the jewellers complain that they hardly earn from selling gold these days,” said Meenakshi Sharma, a resident of Pinjore.