Double Dhamaka For Chennai's Gold Lovers

With gold prices tumbling by a significant Rs 600 within the last week, sales at jewellery shops have seen a bit of an upswing.

Published: 22nd July 2015 01:48 AM  |   Last Updated: 22nd July 2015 01:48 AM   |  A+A-

Jewellery shops

CHENNAI: With gold prices tumbling by a significant Rs 600 within the last week, sales at jewellery shops have seen a bit of an upswing. Customers, who had already been thinking of cashing in on the Aadi discounts, have decided that there can’t be too much of a good thing and have dived in headfirst.

“After the weekend, the rush has not gone down as much as it usually does. People have been coming in on Monday and Tuesday now that the prices have dipped so far down,” said an employee of GRT Thanga Maligai.

The price of gold has dipped substantially after the Shanghai Gold Exchange began trading expansively. Gold prices for 22k gold has touched Rs 19,080 for a sovereign and 24k gold has hit Rs 20,408 — marking the lowest that it has been in the past five years, barring the odd anomalous dip. In fact, trade analysts have predicted that gold prices may stabilise within the week if dollar prices improve, which means that if you want to save a few hundred rupees or buy a slightly prettier necklace for your wife, the time is now.

Taking this as a once-in-a-lifetime opportunity to invest in the precious metal, people have been quickly buying gold coins over jewellery. “We have had a significant increase in requests for gold coins with certificates in the last two weeks. It is because people want to buy that extra bit of gold for investment sake and not just for the marriages that will happen after Aadi,” said Mukesh Mehta, a Sowcarpet-based gem merchant.

Another thing that traders have noticed after the price dipped is that appearance of ‘serious’ buyers — the kind who doesn’t just do window shopping, but also steps out with the intent to stock up on gold up to a certain budget.  “There has been a 10-15 per cent increase in sales volumes over the last two days.

The rate is one that was last seen only in June 2013. People who had planned to buy gold earlier are making their purchases in advance. Dealers, who saw 50-odd customers a day have seen footfall go up by 65-70 customers. What we have to also understand is that conversion rates are high, so more jewellers are making a sale as opposed to tending to floating customers,” said Jayantilal Challani, president of the Madras Jewellers and Diamond Merchants Association.

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