People buying gold before it goes up further
Rourkela: Jewellery shops in the city are gradually recovering from the blow that struck the market during the lockdown. The number of people buying jewellery during the third and fourth quarters, especially during Dhanteras, is higher this year.
“The same number of customers as last year visited our store this year,” Bikram Patel, store manager of the Tanishq showroom in Rourkela, informed The Observer. “We focused on both Covid-19 and customers. Hence, we had to let go of a lot of customers.”
Tanishq had set up lobbies for customers in a nearby textile showroom. The company sold jewellery for marriages online.
Gold price has been rising in recent months after crashing in the wake of the lockdown. It has crossed Rs 50,000 for 10 grams.
Varghese CA, Commercial Manager, Khimji Jewellers, said: “The number of customers buying gold during Dhanteras this year increased. We witnessed a growth of 60-80% over last year during Dhanteras. We were growing by 30-40% during the lockdown through online sales.”
“Jewellery is sanitized after each use by customers. Proper social distancing is maintained, and we are promoting cashless transactions.”
Milan Singh, a customer at Prasad Gold Plaza whose daughter was to get married on December 2, said: “Even though gold rates have skyrocketed this year, we have to buy jewellery for the marriage as it is considered holy and is a part of the rituals. The marriage had to take place in April, but we had to postpone it due to the virus. Had we known that the gold rates would go so high, we would not have waited to buy jewellery.”
Sumiti, a customer at MM Jewellers, said she bought more gold during Dhanteras this year than she usually does. Gold price has increased so much that she may not be able to afford it later. “It is safe to buy some extra gold and store it.”
Swastik Shivasish, a gold investor, said: “Nowadays, investing in gold has become the most profitable thing. It has become even more profitable than investing in the automobile sector.” Buying gold and keeping it for a year or two will be highly profitable.
Stock broker Angel Commodities Ltd has estimated that gold price will go up to Rs 65,000 by Dhanteras next year.
Dilip Subudhi, the owner of Subudhi Jewellers, said: “Customers who were buying gold earlier are buying silver this year. Due to the cut in the salaries of middle-class people, locals can’t afford gold.”
Most small jewellery shops, like that of Subudhi, had fewer footfalls during Dhanteras this year. Jewellers think this has more to do with gold inflation than with Covid.
“We are following every safety measure that we can. It’s the price due to which the people are skeptical of buying jewellery,” Subudhi added.
The price of the yellow metal has increased to Rs 51,000 per 10 grams from Rs 43,000 in February. Though it has fallen after touching Rs 56,000 in August, market researchers say it will rise higher.