Despite high gold prices, buyers outnumber sellers

Neeraj Bagga

Tribune News Service

Amritsar, July 28

Despite high gold prices, buyers have outnumbered sellers in the local market. Gold price on Tuesday touched Rs 54,200 per 10 gm. Pankaj Khurana, a leading jeweller, says despite rise in gold prices customers are not coming out to sell their old gold.

He accepted that the sale of gold ornaments had drastically come down to a fraction in comparison to the last year. At the same time, they heaved a sigh of relief as they were not bothered by the sellers. In that case, they would have to arrange huge funds.

He said: “The Bank of America has predicted that the price of gold will reach $3,000 per ounce, which is 31 gm and 100 milligrams, in a couple of years. It means that the price of the yellow metal will be close to Rs 80,000 in the Indian market in coming months”. Anil Jain, another gold ornament merchant, said: “Traditionally in India, gold is considered a hedge against inflation and a safe refuge for bad times, besides being an integral part of weddings. This rule is gradually being adopted globally as the faith in the yellow metal is growing”.

Charanjit Arora, a veteran gold jeweler, said, geo-political tension like belligerent relations between China and the USA and uncertainity induced by the Covid-19 prompted many governments, influential institutions and people to park their surplus money in gold. So it was fuelling gold prices”.

Vinod Mehta, another jeweller, said, the demand for gold ornament was sluggish in the local market. He said the response of people towards the gold would be visible in the forthcoming winter marriage season.