Dip in prices sparks gold rush

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All that glitters... is gold. And when you get that glitter at an all-time low, then it’s time for a mega buying spree. With gold prices dropping to about `28,000 for 10 grams, the lowest since 2011, people have been flocking to jewellery stores in the city. Most of the shops have seen 30-50 per cent rise in footfalls.

“The slump in gold prices has had a positive impact so far, with very high volume growths. We have observed that the customers have reacted positively and hope and expect it to stay the same, as the wedding season is on and Akshaya Trithiya is round the corner,” affirms Sandeep Kulhalli, vice president, retail and marketing, Tanishq.
While many people who had been planning to invest in gold for some time are considering this an ideal opportunity, others are buying jewellery for personal use. “With the drop in gold prices, we have registered 40-50 per cent increase in footfalls across centres. Those in their 20s are buying smaller jewellery pieces like pendants, rings and earrings for personal use. The 30 plus are looking at heavy kadhas and bangles. Interestingly, many people are coming to buy gold jewellery and even ending up buying diamond,” informs Sanjeev Agarwal, CEO, Gitanjali. He adds, “Those with a latent desire to buy gold but inhibited by its spiralling rates are now mustering courage to buy something or the other.”
“Keeping the current scenario in mind, buyers are queuing up outside jewellery shops to buy gold coins and bars. It is being bought more as an investment than for personal use,” feels Amar Nanavati, spokesperson, Pure Gold.
Shops across the city are getting a steady stream of buyers, the main age-group ranging from 25 to 40. On an average 20 to 50 grams of gold is being sold, be it in the form of gold coin, bar or jewellery.
It is not just the ‘brick and mortar’ shops that are receiving heavy traffic, even the e-commerce sites are registering brisk sales. “In the last two days, we have registered a 50 per cent increase in our gold products. Since we stock light jewellery, rings, bangles and pendants are being bought by our customers. We are expecting the rush to continue for around a week. Then it should stabilise,” says Gaurav Singh Kushwaha, founder, Bluestone, an online jewellery buying portal.
As the wedding season has already started, the dip in price of gold has come as a blessing to many. Says Roshni Kapoor, who is all set to get married in a month, “Although most of my shopping is complete, including jewellery and clothing, this drop in gold price has come as a bonus. I was tempted to buy a beautiful gold choker, which I might have not purchased if the price had not dipped. But having got a fair deal, I am ecstatic.”
With a win-win situation for buyers and sellers, looks like both have a cause to cheer for some time!