Commodity Online
MUMBAI: This week gold prices soared to Rs 15,800 per 10 gm level. Something unheard of in Indian bullion market. But, experts still say gold sees no full stop now and it will go up to Rs 20,000 per 10 gm in 2009 itself.
This confidence is emanated from the hope that when the world is in recession, people will invest heavily on gold and the commodity’s supply will be the same without any change. That means the prices will further shoot up.
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Gold coins buying spree grips India
Gold prices rose to a record high of Rs 15,800 per 10 gm in the bullion market on Thursday. So, when the gold prices are soaring who is making the moolah.
Mostly, it is the Indians who are making a killing from this rise. India is the world’s biggest consumer of the precious metal and most of the possessions in Indian households are gold jewellery.
Now, when gold touched above Rs 15,000 per 10 gm mark, many Indian families are selling their old gold jewellery and making huge profits.
In Gujarat, several families have sold their old gold ornaments and are waiting for the prices to come down so that they can buy new jewellery at a lesser price.
In Maharashtra and Kerala also people are selling their old ornaments and booking profits.
Gold’s upward march gaining Rs 1,600 per 10 gram this month so far has attracted a heavy rush of gold customers to sell their scrap gold and old ornaments to replace with new designs once the prices decline and make good profit in the interim.
While customers are eager to sell and make quick profit when prices are scaling new high every day, there is no physical buying for the same reason.
Expectations are running sky high but no one is willing to purchase at existing higher levels and the buying for the ongoing marriage season is confined to sovereign coins only as it is seen as a solid asset.
The bull-run is purely on speculation and more corelated with the global trend, with hardly any physical buying in last few days.
