High bullion prices fail to deter Diwali spirit

The record high in gold and silver prices has failed to dampen the spirit of Diwali shoppers in Lucknow.

The price of gold is hovering around Rs 16,000 per 10 gm and is almost Rs 4,000 higher than last year levels.

“By tomorrow, we expect the sale of almost 200 kg of gold and 1,000 kg of silver in Lucknow city market alone,” Uttar Pradesh Bullion Association office bearer Shiv Narain Agarwal told Business Standard.

“There is no effect of high bullion prices or the so called economic slowdown in the buying pattern of the shoppers this year,” he noted.

Interestingly, he claimed that the sale of gold and silver jewellery was almost three times the volumes recorded last year. The bullion shops are open till late night hours to allow people buy.

The traditional markets and the malls are tastefully decorated, offering bargains to customers, including discounts, free gifts and gift vouchers.

“People are not only buying for the festival and marriages, but also buying 24 carat gold biscuits for investment purposes,” he added.

Agarwal said he expected the gold prices to breach the levels of Rs 18,000-19,000 per 10 gm by November-December.

Several public sector banks are also selling gold coins this season and doing brisk business, since there is premium attached to buying such coins from nationalised banks, which guarantee purity.

The markets of Lucknow and Kanpur account for almost half of bullion sales in UP. In Lucknow, there are about 50 big jewellery retail outlets, including local and national brands, besides, several hundreds in the unorganised sector.