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Prices at record low, investment grows in gold in Ahmedabad |
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AHMEDABAD: Low prices have spurred investment in gold in the city as investors are buying gold bars after more than two years. The prices are currently at three-year low and trading below Rs 26,000 per 10g, resulting in buying from investors, besides regular buying from people.
According to bullion traders, people are investing in gold to secure their future as yellow metal continues to be a volatile commodity. "After almost two years of slowdown, we are seeing investment in gold," said Haresh Soni, chairman, All India Gems and Jewellery Trade Federation (GJF).
The investors, however, are still treading cautiously as the investment is limited to smaller amounts instead of bulk buying. "Basically, it's the small investors who are buying 50g and 100g bars. The 1kg bars are not much in demand. With the marriage season ahead, people are skeptical that prices may again go up so they are buying now," Monal Thakkar, president, Amrapali Industries.
In the last few years, the gold prices have gone from Rs 8,000 per 10g to Rs 33,000 per 10g last year. "Having seen gold prices going up and down within a short span of time, people are investing in gold when it is at low," added Thakkar.
Such has been the reliance on gold in Gujarat that in the last three years, loans on gold has gone up 200 times. According to rough estimates in 2010-11, approximately Rs 90 crore of loans were disbursed by gold finance companies and banks on gold in Gujarat which in 2013-14 crossed Rs 2,000 crore.
According to bullion traders, people are also investing in silver which went below Rs 37,000 per kg from Rs 44,000 per 1 a year ago.
One fourth of gold imported in country comes in Gujarat in October
Gold imports in the country fell to 84 metric tonnes (MT)- 88 MT in October from 95 MT in September this year, in spite of spurt in demand in festival season. Of the 88 MT imported in India, around 24 MT was imported in Gujarat at Sardar Vallabhbhai Patel International airport in the city, accounting for one-fourth of the country imports. The festive season has rejuvenated the otherwise dull business as state recorded highest gold imports in last 17 months. "Gujarat has been one of the biggest consumer of gold accounting for 15%-20% of total sales in the country, only behind Tamil Nadu," said Monal Thakkar, president, Amrapali Industries. Industry insiders said that many Maharashtra based bullion traders import gold at Ahmedabad due to certain octroi and taxes in Mumbai which can also be reason of growth in imports in Gujarat. In September this year, the gold imports in country jumped about five times in comparison to August 2014.
Source : timesofindia.indiatimes.com
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