Gold prices dip an added draw to Akshaya Tritiya buyers (Lead)

May 6th, 2011 - 6:13 pm ICT by IANS  

New Delhi, May 6 (IANS) Friday saw gold rush in Delhi, with buyers thronging jewellery shops after prices of the precious metal dipped by around Rs.500 per 10 gm, coinciding with the auspicious occasion of Akshaya Tritiya.

The Akshaya Tritiya festival is one of the two most auspicious days of the year to buy gold. Hindus believe they can get lasting prosperity by buying precious metals on the day. The other festival is Dhanteras two days before Diwali in October or November.

“The response is just overwhelming, we are catering to a huge rush at all our showrooms across the country. The mood is upbeat. It seems that those who had not even planned have also turned up today looking at the dip in the prices,” Balram Garg, managing director and chief executive of the Delhi-based PC Jewellers’ Group, told IANS.

“With such a demand, we expect the business today to rise by 30 to 40 percent as compared to Akshaya Tritiya last year,” he added.

Gold, which was retailing at Rs.22,300 per 10 grams a day before, fell to Rs.21,800 Friday. Silver prices too slipped to Rs.56,000 per kg compared to Rs.60,000 Thursday.

According to the Multi Commodity Exchange of India Ltd (MCX), gold spot prices were at Rs.21,700 per 10 grams Friday, while silver was at Rs.53,757 per kg.

The fall in gold and silver prices was due to a weakening in the global prices of these precious metals and other commodities.

“I had no plans of buying a gold jewellery but the sudden dip in the prices of the metal made me change my mind,” Roshani Agarwal, who works as a manager in a private firm, told IANS.

According to shopkeepers, there was more demand for the daily-wear and lightweight jewellery but people were also buying gold coins as an investment.

“I buy gold basically for investment purpose so I bought a 10-gm gold coin for around Rs.23,000,” Saurabh Shukla, a chartered accountant, told IANS.

However, there are many people who have been buying the precious metal to meet the family customs as well.

“I am buying an earing to gift to my daughter-in-law. Though it’s good that the prices have dropped marginally, I would not have been much bothered even if the prices remained intact as buying gold today is a ritual and has to be followed,” said Jayanti Bose, a resident of Kingsway Camp.

Local jewellery shops as well as branded jewellery makers across the country are also offering huge discounts to attract customers this festive season.

While PC Jewellers is offering one gold coin with the purchase of diamond jewellery worth Rs.25,000 and half a gram of gold with purchase of Rs.40,000 worth gold jewellery, D’damas is offering free jewellery worth up to 30 percent of the purchase done.

Delhi-based jewellers, Manohar Lal Sarraf and Sons Jewellers, who also have shops in Noida, is offering a 20 percent discount on the making charges. The retail chain charges Rs.300 making charge for five grams of gold coins and Rs.2,500 for 100 grams.

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