AHMEDABAD (Commodity Online): Will gold prices fall after Diwali, the coming gold-buying religious festival season in India? This could be the most common phrase or question posed before jewelers in Gujarat state in India this season. The consumers always got the predicted answer – NO.

It is difficult for the jeweler to ward off a customer on the pretext that the price could fall, even if it is true. “We cannot ask them to come back once the price falls. So obviously the answer is the price can only go up,” said one of the jewelers in Vadodara.

And this can be seen in the mad rush seen in jewelers shops around Gujarat out to buy gold on the auspicious occasion of ‘Pushya Nakshatra’. And this is a huge 200 kg of gold which was sold in Ahmedabad alone on this day. The entire Gujarat’s value could be at least three times this figure.

Ace stock market investor, Rakesh Jhunjhunwala predicted that the stock market could fall in a couple of months as the rally as witnessed now is not realistic. But people believe gold is much safer as its fall is not as steep and even if the prices fall, the rebound is fast.

Gold sales are in complete contradiction to the dull market seen last year. This despite the fact that told prices have made a steep hike from Rs 12,200 to Rs 16,200 per 10 gm and this could remain much the same or higher because of dollar weakness.

The old fashioned gold jewelleries have been replaced with gold bars now so much so that there is advance booking for bars for delivery on Dhanteras day, auspicious by Hindu tradition.

“I changed my buying habbit this year. Normally I bought jewellery which I think made me loose making charges and then had to recycle when sold. Bars are much easier way to invest. But unfortunately, there is not much available. I just paid money and I am told I will get the delivery next week,” said Mahavir Shah, an investor at the busy CG Road.

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