CHENNAI: While the mercury soars, the lower price of the yellow metal this summer has come as a boon to people during the auspicious season of weddings in the State.
Gold price, which soared up to `24,000 per sovereign (22 carat) a few months ago has come down to around `20,752 per sovereign, bringing cheer to families planning to arrange a wedding for their girls. Although, the prices are slowly picking up, it still remains below `21,000 per sovereign.
This is very unusual as the rise in the demand for the precious metal witnesses a corresponding increase during this period.
For, the advent of ‘Ilavenil’ season, the peak of summer in peninsular India coincides with the wedding season as well. Besides the two Tamil months of ‘Chithirai’ and ‘Vaigasi’ in this season, the subsequent month of Aani which falls in the following ‘Mudhuvenil season’ are marked as auspicious for weddings, but the very next month of ‘Aadi’ is considered inauspicious. These three months starting from April 14 and ending in the middle of July are a busy part of the year for marriage halls, pandits and caterers as well.
Usually, the season witnesses a rise in the price of gold as the demand peaks, but this year, it is low. However, the demand has not peaked yet, as some buyers are still waiting for the Union budget, which they believe will slash import duty on the metal, further decreasing the cost
Hedging or not, the price dip is a welcome relief. Shanthi, a housewife, who has arranged for her second daughter to get married in the second week of June, said, “Right from the birth of my first daughter Kalaiselvi, I started buying jewellery. For, purchasing gold in bulk just before marriage won’t be affordable since it is getting costlier every year. She was married three years ago and I had no time to buy jewellery for my second daughter Priya, whose marriage has been fixed. I was worried about gold price as I wanted to buy 50 sovereigns to ensure parity between the siblings. I expected that the price will rise steeply after Tamil New Year Day. However, it fell to around `20,000 a few weeks ago.”
Govindan, a retired Central government employee said, “I have planned my daughter’s marriage this season, as I received my retirement benefits in May. I did not buy jewellery earlier as I was repaying the housing loan. My wife and I feared that prices will shoot up at the time of marriage. Instead it dipped and brought great relief.”
However, Anandhi, working in a private company regretted her decision to buy jewellery for her daughter’s marriage a year ago as she thought that the prices would go up further.
She said, “I bought the jewellery when the price was around `24,000 per sovereign. If I had waited, I could have bought more with the same amount.”