Andhra Pradesh - Hyderabad   

It's more precious now

K. Srinivas Reddy

HYDERABAD : Whether to buy now or wait for some more time. That's the point of animated discussions in many a family in Hyderabad nowadays.

With the price of gold touching an all-time high of Rs. 8,040 per ten grams (tola) on Monday, those who wish to buy gold are the most confused lot. Whether the price would come down in the near future is the matter of discussion in almost every household.

The abnormal increase in gold price from Rs. 6,160 per tola (22 karat and ornamental) on August 1 to Rs. 8,040 on December 12 hit the bullion merchants very hard. Despite the marriage season is on, almost all gold ornament shops have reported a sharp downward trend in sales.

Gold merchants say that Rs. 8,040 per tola is the highest in the last twenty years or so in the country. "It's not surprising that prospective buyers are waiting for the price to come down. Would you like to buy gold at this rate? Anyone would naturally wait for some more time. But contrary to the expectations, gold price has been steadily rising and sales dipping proportionately," rues a leading gold merchant.

No resale on big scale

An interesting aspect of the gold price shooting up is that while the sales have dipped abnormally, resale of gold by people has also not been reported on a large scale. As an investment option, sale of gold at this rate would have been financially wiser, but none seem to be in the mood to sell.

"A majority of people, especially those not well versed with share market, buy gold as an investment option. Such investors would not go for speculative trading and hence we do not find many people trying to sell gold when the price has shot up. Moreover, possession of gold is a sentimental issue," feels Ashok Gupta of Totaram Murarilal jewellers in Abids.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

The thrill of life in the fast lane Thrill of life on the fast lane
Will AICC session play spoilsport for Balayogi Stadium facilities?
`Mega city' tag for Hyderabad soon Hyderabad to be soon declared a `mega city'
AICC session may harm synthetic track
MCH chalks out ambitious plan for city development
TDP blasts State on findings of panel
Consensus eludes parties on delimitation exercise
Government move on doctors receives support
It's more precious now
Naidu for steps to check price rise of essential commodities
Victims of child marriage fight back
Visually-challenged youth killed in road accident
CLP flays TDP campaign
Toast to Deccani shayari
Clash over kite leads to attack on family
Air Deccan flights for Pune, Nagpur, Goa
Indo-US tie-up planned by oil bodies
Celebrating 120 years of education
Leaders call for peace and unity
States asked to prepare data on gram panchayats
Brain Bee Quiz on Dec. 24
Rose show selects its royals
Nishat Khan performs at Raj Bhavan
Never Never Land!
Top aerospace scientist dead
IAS officers appear in court
Court seeks details on Polavaram oustees
Patient's death triggers protest
Your neighbourhood and you
Fire lit for warmth turns `killer'
HC directive to Government on petition on CRZ
BJP's plea to Jana Reddy
Sentry's weapon goes off
No power supply
Around the City
In Hyderebad Today
Reporter's Diary

Copyright © 2005, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu