Tue, 25 Oct 2011 07:43:09 GMT

Gold sales, prices up on Dhanteras



New Delhi/Mumbai Oct 24 (PTI) Prices of gold and silver today went up, with retail buyers making a beeline to buy the precious metals on the auspicious Dhanteras Day today.
Sales also witnessed a rise in the range of 25 and 60 per cent compared to that on Dhanteras day last year.

Market players said sales could have been much higher but for the recent sharp rally in gold and silver prices.
It is considered auspicious to buy gold, silver and other precious items on the day of Dhanteras.

"We are witnessing good sales. To counter the impact of high prices on sales of glod and other precious items, we have launched light weight jewelleries," a senior official of leading jewellery chain PC Jewellers said.

The sales are likely to be 20-25 per cent higher than last yera''s Dhanteras, he added.

Gitanjali Gems, a leading nationwide retailer, said sales have been higher by up to 60 per cent this Dhanteras.
"Gold is doing very well. We are expecting 60 per cent more in terms of value as compared to the last year (Dhanteras). In diamond, we are witnessing 25-30 per cent more sales," Gitanjali Group chief Mehul Choksi said.
Choksi said that coins were contributing 30 per cent of the total sales.
In the Delhi bullion market, gold were prices were up Rs 100 per 10 gms to Rs 27,130 and silver rates rose by Rs 300 per kilogram to s 53,500 per kg.

In Mumbai, prices of standard gold (99.5 purity) rose by Rs 115 per 10 grams at Rs 26,785. Silver ready (.999 fineness) rose by Rs 280 per kg to finish at Rs 53,930 from Rs 53,650 last weekend.

While there is no common platform to track gold prices across the country, the gold ETF which follow the physical market and are traded electronically on stock exchanges, appreciated today by 1.1 per cent to 2.5 per cent.
The leading stock exchange NSE clocked a record volume of Rs 636 crore in gold ETFs today, which is nearly 7 per cent of the daily average.
Gitanjali Gems CEO said that the footfalls were very high at the stores, especially since afternoon.
"The footfall is much higher than last year despite rise in the price. We are expecting 15-20 per cent higher sales than last year in terms of volume," said Bachhraj Bamalwa of Nemchand Jewellers in Kolkata.
Traders said that rising trend in the global market also helped the rise in gold and silver prices in domestic market.

"Though the day (Dhanteras) is considered auspecious for buying precious metals, steep rise in prices compared to last year significantly reduced the physical demand for jewellary," a trader in Mumbai said.

Gold and silver rates have shot up by whopping 36 per cent and 41 per cent, respectively, compared to the last year, they pointed out.

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