It’s gold rush, even at premium Text Size: | NAGPUR: The global slowdown brought a Dhanteras bonanza for Indian consumers. Gold prices crashed right amidst the festive season and consumers rushed to make Dhanteras purchases. So heavy has been the demand that in Nagpur gold was being quoted at a premium of Rs 400 against its basic market rate of Rs 12,000 per tola (10 grams) on Saturday. Traders say the situation will continue on Sunday too. World Gold Council claimed that 50 tonnes of gold was sold in the last 20 days in the country.



Gold is weak in the international market for a host of factors. Firstly, financial institutions in the West are resorting to selling off their gold holdings to tide over the liquidity crisis. ���This has proved a boon for Indian consumer as the yellow metal has become cheaper at home,��� said Ashok Minawala president of All India Gems and Jewellery Federation. Many harried speculators in the US had squared off their trades, pulling down the rates too, add traders.



Gold rates fell to $699 per ounce on Friday before settling at $732. This was a god-sent for Indian consumers, who are eager to buy gold on Dhanteras. Just before the auspicious day, prices dwindled to Rs 12,000 per tola (10 grams) as compared to an all-time high of Rs 14,000. Even traders who were expecting a dull Dhanteras had their cash registers ringing.



In fact, jewellers are now faced with a supply crunch and wholesalers are charging a premium over and above the base price, which is calculated by adding the local taxes to the dollar rates.



Nilesh Rathi of SMS Bhav, an online rate information agency, said that against the wholesale price of Rs 12,100 in Mumbai which is the centre, in Nagpur it is being quoted at Rs 12,400, while at some counters it is as high as Rs 12,600. There is a bank holiday on Sunday, so are bullion traders closed for Diwali, which has put tremendous pressure on the supply side leading to the premium. The rates in bigger centres like Mumbai, Delhi or Ahmedabad are between Rs 12,100 to 12,150 due to the proximity of supply points. Even many of the couriers who ferry gold to smaller centres are on a vacation which has added to the supply shortage.



It is the middle class buyer who is driving the market. The sixth pay commission arrears has brought a huge funds in the market. So did several employees in the private sector get bonus. ���A windfall gain coupled with low rates has buoyed the buying,��� said Ajay Shah of Shreeji Jewellers.



Kumudini Kadhao, a housewife had no plans to buy gold this year, had the rates not fallen. ���I feel the rates are comfortable for me to purchase. It has been a tradition in our house to buy gold on Dhanteras and the low prices have surely helped.���



Sudhanshu Mishra, an executive in a private firm said, says he could buy one more ornament for his wife due to the low prices. Otherwise, he had plans to buy just for namesake this Dhanteras. So were Ravindra and Pratima Dewtale, happy over the fall in prices. ���It has been a Dhanteras gift for us,��� said the couple.

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