In an unusual turn of events, the bullion market is experiencing a surge in demand post-Diwali, a period traditionally marked by a slowdown in sales. The correction in gold and silver prices over the past few days has reignited interest among buyers, leading to increased demand for jewelry, coins, and medallions.
Gold prices, which hovered around ₹79,775 per 10 grams on October 30, have dropped significantly to the ₹74,000 range. Similarly, silver prices have seen a sharp decline from over ₹1,00,000 per kg in mid-October to approximately ₹90,000. This substantial correction has prompted hesitant buyers to step in, driving sales and imports of the precious metals.
Chirag Seth, Principal Consultant at India Metals Focus, commented on the trend:
“The correction is huge for both gold and silver. Buyers who were previously indecisive are now taking the plunge, which is evident in the rising import volumes for both metals.”
Saiyam Mehra, Chairman of the GJC, reported a 10% surge in sales over the past few days, with a noticeable spike in the demand for coins and medallions. He estimates that around 5-6 tonnes of coins have been sold recently.
“We are seeing demand from both investors and consumers,” said Mehra, highlighting the dual appeal of gold and silver as both an investment and a decorative asset.
This renewed vibrancy in the bullion market is a testament to the enduring allure of precious metals, even in a fluctuating economy. With the prices now more accessible, the festive afterglow seems to have extended its charm to the bullion sector, providing a significant boost to traders and buyers alike.
Leave a comment