Commodity Online MUMBAI: Gold prices showed signs of volatility after its peak of $ 1,000 per ounce level but the gold related stocks on BSE and NSE seems to have gained on the confidence of investors in the commodity than the stocks.
Gitanjali Gems Ltd was trading at Rs.34.90 up by 4.18% from its previous close. The stock has remained almost stable during past one week as it touched a weekly high of Rs.37.70 and plunged to Rs.32.50 for a weekly low.
Get prices and trading tips of commodities on mobile However, over past one month the stock price has plunged by over 30% from its highs of Rs.51.85 on 11th February 2009.
Similarly, Rajesh Exports Ltd too had witnessed a jump during the day, and was trading at Rs.22.95 up by more than 2%, while the stock has remained stable last week at Rs.23.50 as its high and Rs.22.45 as its weekly low levels. The stock price has not much fell from its monthly highs of Rs.26.05 during 10th February.
Renaissance Jewellery Ltd, was trading at Rs. 20.95 up by more than 2%, which had touched Rs.22.85 last week. The stock has remained positive over past couple of weeks.
These companies can heave a sigh of relief as gold prices will only go up because of two reasons. One is that the yellow metal has become the only source of investment cutting across religion, caste, countries and gender.
The second and the most important is that he leading gold mining nation, South Africa, has halved its annual output since 1998. The days of finding marble-sized nuggets in California are long gone, with most of the world’s remaining gold existing only as traces in difficult regions.
But it needs to be seen how this impetus can be converted to jewellery buying as these companies are more into making jewellery than selling gold coins or bars. The traditional Indian mantra of vaulting gold jewellery than other forms of gold will drive the jewellery sales and thereby the growth engine of these companies.
