Gold News

Gold Surge Dents Diwali Demand

Gold's current surge is denting jewelry demand in India, the world's biggest Gold Market...

EVEN THOUGH the Diwali festival is just round the corner, the volatility in Gold Prices is turning customers away from gold coins in India.

   According to Gold Market experts, this year has seen one of the worst demand swings due to price volatility. One day the price is Rs9,800 per 10 grams; the next day it is Rs10,100 per 10 grams.

A retail jewelry buyer cannot make a decision amidst such volatility, said experts who spoke to Commodity Online.

However, the emergence of gold coin demand for corporate gifting purpose is picking up. Now the State Bank of Kerala has also decided to jump into the gold coin retail market.

The SBI is launching a scheme to sell gold coins in retail through selected branches in the state.

The scheme will commence from November 1. The scheme intends to broaden the range of services and to extend best customer services, keeping in view the changing needs and aspirations of customers.

The customers would be offered best quality gold at affordable prices during the ensuing festival and marriage season.

Initially, coins of five gm will be available through designated branches at Ernakulam, NRI Ernakulam, NRI Thiruvananthapuram, Thiruvananthapuram, Thrissur and Kozhikode. The scheme will be extended to other branches in due course.

The Gold Price has gained 25% this year, with gains accelerating since late August on signs of increased jewelry and investor purchases, especially in India .

Gold rose in London to the highest since 1980 on Monday as record crude oil prices and declining value of the Dollar against currencies, including the Euro, spurred demand for the yellow metal. Gold Prices surged to Rs10,135 per 10 gm in the local market in Mumbai. Silver climbed to an eight-month high.

But with the gold and silver prices soaring to new heights, the buyers are a bit sceptical before they go for the Diwali purchase. Moreover, the wild swings in Indian stock market have also added to the confusion in India’s bullion market.

Commodity Online is a leading online, print and content provider of news, information and research reports on the commodities sector. With offices in Mumbai, New Delhi, Ahmedabad, Cochin, Bangalore and Dubai, it also powers content in the SME sector, as well as the insurance and banking industries.

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