HYDERABAD: Haresh Soni, Chairman, All Indian Gems and Jewellery Trade Federation says, “One must understand that gold is a highly credible commodity. Globally, a number of parameters affect the gold prices. The international markets in turn are affected by geopolitics of Iran, Iraq, Uzbekistan and Russia. By and large, there are predictions that International gold rate will consolidate at US dollar 1125 - 1325 which is less than one per cent of the total gold price. Any disruption in international markets is sure to affect the prices across the globe.”
Bachhraj Bamalwa, founder partner of NB & Sons and past chairman of GJF on his part says, “On a National front, when the 80:20 scheme was scrapped by the RBI and it was anticipated that the prices would go down. With the months to come, it’s expected to downslide.”
Due to a number of parameters, the gold market practically, is at the lowest. City jewellers on their part maintain that buying gold as an investment would be folly right now.
Madhusudhan G, general manager of Kirtilals says, “There is atleast a difference of `50-60 for every consecutive days. Two years ago, the gold rate at Diwali was `3200, in 2012 Diwali the price was `2900. This Diwali, the rate was `2500 so this is the first time since the inception of our business that the gold rate has gone down so much. Generally, the dollar rate and crude value affects the gold rate but this time, gold rate hasn’t been affected by any of this and has been going down for the last couple of years. As to buying gold for weddings, that season is over and it will begin only after January 25.”
“As a customer, purchase gold only if the purpose is significant like a wedding or an important function. But this is definitely not the right time to purchase gold as an investment. One will have to wait for the prices to fall which is likely to be in the next six months.
This is the right time to sell gold biscuits,” opines K Venkatesh Goud, manager, Mangatrai Jewelers.
The gold market seems to be always uncertain, for there are a number of factors that affect the prices like economy of a country, geo-politics, demand and supply chain to name a few. Customers from across the city have their own views on buying and investment in the yellow metal.
Madhavi Vootla, a Tollywood actress believes, “I usually never buy gold as an investment but if there is a need to purchase gold, I wouldn’t mind purchasing it irrespective of the prices in the market. Need is my priority to possess gold and it is not a share that I would trade. If need be, I will definitely buy what I wish to wear for I believe that it is neither a property nor an investment.”
Kashyap Murthy, an employee at Nvidia Graphics Pvt Ltd says, “I have always seen gold as a long term investment at least in the next five to six years. The recent pattern of the gold prices have been fluctuating in the last two years. With the increment of the gold rate in the last few days, I would definitely not purchase gold now not even as an investment for my sister’s wedding. I would in fact sell the gold biscuits in my possession at a rate better than what I bought them for and invest the same amount on other profitable commodities.”
While experts and customers remain divided on when to buy gold, it is only a matter of time and purpose which finally determines the decision to buy.