Festive gold buying season continues in India, defying record prices

Indian buyers of gold ignored record high prices and shopped for the Dhanteras and Diwali festivals starting on Tuesday, industry executives told Reuters, on hopes the bullion will continue to rise amid a slide in the stock market. Will get promising returns.

Strong demand in the world’s second-largest gold consumer could further support global prices, which hit a record high last week. India’s trade deficit may also increase due to increasing demand for gold imports and may put pressure on the rupee.

Saurabh Gadgil, Chairman, PNG Jewellers, said, “Despite prices hitting record high during Dhanteras, people are still attracted towards gold. Gold is giving better returns compared to the stock market, which has led to solid demand for coins and bars. Is.”

Indians were celebrating Dhanteras on Tuesday, the day is considered auspicious for buying gold and is one of the busiest days for buying gold in India.

Local gold prices hit a record high of Rs 78,919 per 10 grams last week, a rise of over 31% since Diwali last year. India’s NSE Nifty 50 stock index has fallen nearly 7% from its record high on September 27.

Gadgil said investors are working on diversifying their portfolios by adding or increasing their allocation to gold and silver.

Prithviraj Kothari, chairman, said, “In terms of value, the turnover during Dhanteras this year is expected to be much higher than last year due to higher prices. In terms of volume, it will be slightly lower or at the same level as last year. to be around.” Bullion and Jewelers Association (IBJA) said.

Indian dealers on Tuesday charged a premium of up to $1 an ounce over official domestic prices – including a 6% import and 3% sales duty, more than last week’s discount of $4.

Local silver futures hit a record high of Rs 100,081 per kg last week.

“Demand for silver coins and bars was strong today as silver has given better returns than gold in recent months,” said Chirag Thakkar, CEO of major silver importer Amrapali Group Gujarat.