Did jewellers sell gold to hoarders at Rs 50k/10gm?

MEERUT/DELHI/DEHRADUN: With the rumour mill going on overdrive after demonetisation of Rs 500 and Rs 1,000 currency notes on Tuesday night, hoarders rushed to jewellery showrooms to convert cash into precious metals. Across Delhi, Mumbai, UP and Uttarakhand, some

jewellery shops

were seen doing business till late in the night. There was a small queue outside one such shop in Delhi's Green Park Extension at 11.50pm, with no sign of it shutting anytime soon.

While jewellers TOI spoke to denied they accepted money that had just been declared illegal, there were reports from various cities — Meerut, Agra, Dehradun, Delhi and Mumbai — that many bullion traders sold gold at a high premium, exceeding the existing market rate of around Rs 30,000 per 10gm.

In Mumbai, the going rate was Rs 37,000-38,000. Reportedly, business in Malad’s Natraj Market lasted well into the night with gold rates shooting up to Rs 48,000 per 10gm for a brief period.

Mukesh Mehta, president of India Bullion and Jewellers Association said, “It is true that gold is a safe haven investment at all times. Paper money may let you down, gold will never betray you. Its value can only appreciate. The government’s announcement evoked considerable panic among people, and they immediately sought refuge in gold. ”

On a daily basis, around 4-5kg in gold ornaments are sold in Uttarakhand, worth Rs 1.5-2 crore, but Gold Association officials, too, were not sure about the amount of precious metals which changed hands on the intervening night of Tuesday and Wednesday.