Staff Reporter

66 per cent growth in gold sales

Some showrooms claimed that the quantum of sales in the week leading up to Deepavali was twice that of the previous week

CHENNAI: The downward trend in gold prices in the past few days could not have come at a better time than during Deepavali. As customers lapped up the yellow metal, many of them from an investment perspective, sales at showrooms in the city zoomed. Some of the showrooms claimed that the quantum of sales in the week leading up to the festival was twice that of the previous week.

Jewellers across the city said the drop in the price made more customers opt for gold ornaments and coins.

The fall by almost Rs.60 a gram from Rs.1,164 on October 18 led to a gold rush. Aiding their decision and contributing to the increased sale was the turmoil in the global stock markets and the resultant need to invest on safe options such as gold.

Chairman of Gold Club of Chennai N.Anantha Padmanabhan said many customers made use of the opportunity that came their way during the festive season. This year’s sales were more than the last year’s Deepavali sales.

This despite the volatility in gold prices this year. While the buoyant sales this Deepavali are based on initial estimates, the final figures were being compiled.

One gram of gold was on Wednesday priced at Rs.1,126, which is Rs.2 less than Tuesday’s price. Similarly, one gram of silver was priced at Rs.17.50 against Tuesday’s price of Rs.17.45, he added.

Jewellers in the city said such fluctuation in the prices would continue for a few more months owing to a volatile stock market. However, people would not refrain from buying gold, considering its position as a strong investment option, they said.

A release from the All India Gems and Jewellery Trade Federation said that there was a 66 per cent growth in gold sales across the country between October 1 and October 20 over the sales recorded during the same period last year.