Gold continues to function despite soaring prices
While the surge in the price of gold has not cooled the minds of affluent buyers, poorer sections are crossing their fingers as the yellow metal appears to be beyond their reach.
The price of gold continues to rise in recent weeks. Although the price of the yellow metal is normally steadily rising, except during certain periods of volatility, traders believe that it has seen an exponential increase in the recent past. On Wednesday, a gram of 22 karat gold (standard) was sold at 5,064 in the Tiruchi bullion market. The rate was 5,317 per gram for pure gold against 4,702 quoted on July 20, an increase of 362 per gram in 10 days.
Although it was widely believed that the sharp rise in gold prices would prevent customers from buying the yellow metal, especially when people from all walks of life were severely affected by the foreclosure and its cascading impact, Industry sources however said the company was not affected.
There were around 180-200 jewelry showrooms in Tiruchi city and around 50 showrooms in Ariyalur. Almost 10 exhibition halls in Tiruchi have been classified on a large scale in terms of business volume. Almost all of them also have branches in major cities across the state.
While some traders say business is business as usual, there are traders, who say the number of customers has increased between 20% and 30%.
“The number of customers has increased by 30% in recent weeks. Most of them consider gold to be the best investment option. The constant rise in the rate of gold has motivated them to buy as much as possible, ”says S. Mathan, Owner, Pranav Jewelery, Tiruchi.
A general manager of a large jewelry store in Tiruchi said his showroom would receive an average of 300 to 320 potential buyers per day. The same trend continued. “The wedding collections are progressing well. The clients, who arranged their wards’ weddings in 2021, show immense interest in buying ornaments before the gold rate rises further, ”he said.
While echoing the views of Tiruchi bullion traders, NKB Senthil, a gold trader in Ariyalur, said business was good. But, the surge had kept the poor and oppressed breathless. The surge in the gold rate and the impact of the foreclosure has made it difficult for these arranged marriages to have their wards buy gold jewelry, he said.