Higher gold prices and global financial crisis seem to have taken the sheen off gold business in Gujarat.
Every year gold buyers rush to purchase the yellow metal on ‘Pushya Nakshatra’ as it is considered an auspicious day for gold buying. However, gold buying on ‘Pushya Nakshatra’ has halved to 200-250 kgs this year.
According to Rajkot-based gold dealers, nearly 20-25 kg gold and gold jewellery combined were sold in Rajkot on this auspicious day.
The figure for Ahmedabad is 70-75 kgs. In fact, gold buying has declined by around 50 per cent to touch 200 t0 250 kgs in Gujarat on Pushya Nakshtra, which stood at 500-600 kg on same day last year.
In the wake of higher gold prices, consumers in Rajkot, Ahmedabad,Surat and Baroda are waiting for prices to cool down.
However, smaller town and cities traditional buyers continued to buy gold even as the prices were quite higher, traders said. With the gold prices coming down jewellers are expecting good busines on Dhan Teras and Diwali.
This year on Pushya Nakshatra gold prices hovered around Rs. 12,600 to Rs. 12,700 per 10 grams, which ruled at Rs. 10,150 to Rs. 10,300 same day last year. This has resulted in sharp fall in gold buying.
“Consumers believe gold prices to be higher. Gold prices have come down from Rs.14,000 level to Rs.12,800 per10 grams. Still, they are higher as they stood as low as Rs. 11,400 to Rs. 11,500 a month ago. If the prices decline to a level of Rs. 12,000, it may suppory buying on Dhan Teras”, said Balvantbhai Badani, president, Rajkot gold dealer association.