Shanthi P., who retired from service six months ago, invested a part of her savings in gold. But, she says she is still waiting for the value of gold to appreciate.
Fluctuating price of gold may have put the yellow metal out of reach of those who wish to buy jewellery. But, the slump in international gold prices, too, has spelt bad news for investors.
On Tuesday, one gram of 22-carat gold was sold at Rs. 2,795, an increase of Rs.18 from Monday's price. Similarly, 24-carat was priced at Rs. 2, 989.50, which is an increase of Rs.19.50, from the previous day. The cost of one gram of silver was Rs.59. In the last month, the price of 22-carat gold peaked at Rs. 2,850. The price of 24-carat gold touched an all time high of Rs. 3,038 on June 2.
Kokila S., a resident of West Mambalam, said that the price of gold was volatile this month. A sovereign of gold was priced at Rs. 21,952 on June 1. But, it rose to Rs. 22,728 the next day. “Nowadays, I consider it a big deal if gold price dips by even a few rupees per sovereign,” she said. Many people who invested in gold seven months ago expected its value to appreciate by about 5-10 per cent by now. But, the cost has increased only marginally.
Jewellers in the city said that international gold price had dipped by 10-15 per cent over the past three or four months. Prices in the global market influence the prices in the city, a jeweller said.
N. Ananthapadmanabhan, regional chairman, All India Gems and Jewellery Trade Federation, said that as the rupee depreciated against the dollar, jewellers had to pay more for imported gold. This had pushed the cost of the yellow metal in Chennai. However, the increase has been only five to seven per cent in the past few months.
The sales have also not been satisfactory, he said. Sale of new jewellery which accounted for nearly 70 per cent of daily sales, until six months ago, has dipped to 50 per cent.
Volatile pricing of the metal is expected to continue for the next six months, jewellers said.