While Akshaya Tritiya surprisingly didn’t attract the gold rush that was expected, Monday’s dip in prices saw many flocking to stores. As gold prices hit a new low at the start of the week, the first since the auspicious occasion, the happy coincidence of continuously lowering prices with the ongoing wedding season was perhaps the culprit.
And while customers were trying to cash in on the ‘gold dip’, gold dealers were trying to capitalise on it as well, assuring patrons that this was the right time to invest.
Prices for one gram of 22 karat gold clocked in at Rs 2503 and that of 24 karat gold was recorded at Rs 2728 as opposed to the Rs 2540 the former was priced at on Akshaya Tritiya.
And the dip notwithstanding, vendors are still optimistic that prices will continue to go lower given the pattern of fluctuation they have been going through for a while, before ultimately going up. “The demand for gold ornaments has been good for a while and the sale too is positive. Going by what market experts say, the prices may dip to as low as Rs 2300, but we cannot really say when,” said Ravichandran, manager, GRT jewellers in the city.
According to him, people were not just buying gold ornaments to meet their immediate needs in the ongoing wedding season but were also investing in the haloed yellow metal. “A lot of people have been buying coins too as it is purely an investment. Prices hovered around Rs 3100 the same time last year. So the dip has been a huge welcome for both customers and dealers,” he added.
As customers seem to lap up gold coins in a bid to make a solid investment, reports of shortage of the coins were doing the rounds. But PK Siraj, zonal director of Malabar Gold begged to defer. “Though most of our sale is through ornaments, there is considerable demand for coins too. And there is no shortage of coins as such,” he clarified. According to him, with prices revolving around the Rs 2500 mark, it is the right time to invest in gold.
“Considering the wedding season and the dropping prices, what better time do you have to buy gold? Ultimately, the prices will have to shoot up at a later stage,” he cautioned.
Among those who were busily shopping for their kith and kin, there were also many who were purchasing ornaments for wedding dates that were set for much later in the year. “My daughter’s wedding has been scheduled for December. But who knows whether the prices will remain this low then?” said Mahalakshmi, a home maker, who was seen going through the collection of ornaments at GRT on Monday.