Silver coins zoom to record high on 'Dhanteras' demand

Silver coins zoomed to record high levels of Rs 43,000 per 100 pieces in the national capital today, as demand shifted to silver amid high gold prices and weak global trend.

Heavy buying for the festival of Dhanteras today and upcoming Diwali, also led to the rise in the silver coin prices. The silver coins jumped up by Rs 1,900 to Rs 42,900 for buying and Rs 43,000 for selling of 100 pieces.

The coins also spurted, as the silver prices rose by Rs 100 to Rs 37,600 per kg on rising demand. Weekly-based silver delivery held unchanged at Rs 37,000 per kg.

There was some buying of gold and its objects in the markets but in limited quantity, as it gone beyond common person's reach, said Sheel Chand Jain of All India Sarafa (Bullion) Bazar president.

"The demand for gold is limited and customers picked silver coins as a token purchase on this festival, which can also be used in pooja on Diwali," he said.

The gold prices surged in last few trading sessions and today reached to a new peak levels, as retailers preferred silver coins for token buying, ignoring traditional purchases of gold at existing higher levels and weak global trend.

"Consumers are buying gold though prices are higher than last Dhanteras. We are seeing demand for 24 carat gold, especially in bangles and chains," Mumbai-based Oro Jewellers Director (Sales) Avinash Pahuja said.

Higher purchasing power is driving up sales at most of the retail outlets. "We expect gold sales to be higher by 35 per cent from last year," he added.

Gold remained on record highs since last few years, but demand subdued at current higher levels, after touching a new high of Rs 20,120 per 10 gram on October 15.

In today's trading, the gold prices fell for the second straight day by losing Rs 160 to Rs 19,740 per 10 gram on sluggish local demand at prevailing higher levels amid weakening global trend.

Gold remained under selling pressure after the metal declined in global markets amid speculation that a second round of stimulus measures by the Federal Reserve to boost global economy might raise appeal for dollar and hurting demand for the metal.

Gold in global markets dropped 0.5 per cent to $1,351 dollar an ounce.

The gold of 99.9 and 99.5 per cent purity remained under selling pressure and fell further by Rs 160 each to Rs 19,740 and Rs 19,640 per 10 gram, respectively. Sovereign remained stable at Rs 15,950 per piece of eight gram in limited deals.