Even with all the excitement and festivities around Dhanteras, the rising prices of gold and other jewelry just don’t seem to get stationary. Investors are therefore playing safe by purchasing small quantities.Buyers are now thinking twice before indulging in gold purchases for the auspicious occassion. Jewellers believe that the demand for gold jewelry is likely to fall by nearly 50 percent this Diwali.
The average price this year is up by about Rs2,000 per 10 gram compared to last Dhanteras. Moreover, Delhi market is witnessing a further rise of about Rs200 per ten gram.
However, some people also believe strongly that in spite of the rising gold prices, plunge in sales is an unlikely occurrence. Dhanteras will only augment the jewelry sales, though the purchase might be made in small quantities.
1 comment:
Nothing about that article entitled "Dreams turn to dust for India's gold scavengers" made sense to me.
1. Since when do gold shops close down when the value of their merchandise is going up? Gold's price is a function of it's demand (for purposes of this discussion), if the gold price is going up, it's because DEMAND is going up despite any local supply/demand pressures.
2. Why would somebody "scavenging for gold" be wishing that the value of what they're scavenging for would go down? Rediculous. That would be like the bums (i think they call them homeless now) who collect cans wishing that the deposit would go down. I know people in the us that have been "scavenging" for copper. They aren't hoping the value of copper goes down.
I would suggest that these scavengers in India wise up and find the other markets for their increasingly valuable commodity.
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