The gold market has been at the highest since the lockdown. The gold prices have been fluctuating constantly from March until now. With the festive season ahead, there are higher chances of gold prices rising to quite a huge bar. In that case, the bullion buyers have already started with their usual activities.
Various jewellery shops are witnessing bullion buyers. Bullion buyers are those buyers which buy gold or any other noble metal in bulk quantities. They have been buying gold at a premium of $1.5 on a per week basis. Even though there have been fair reductions of $10-15, in the native markets.
The shop owners claim that there might be a rise in the purchasing of gold, but not as high as last year. However, they hope that the gross sales boost up well during this season too. There could be a similar growth of 25-30% of gross sales from the last year to now, but these are just estimations.
With the landed value at $1.5, the market stands at the threshold of premium. With the festive season hovering on the country’s head, it can rise further.
The festive season holds more demand for jewellery and bars than for cash, hence the liquid ratio might strengthen as well. Shops like Waman Hari Pethe (WHP) jewellers are hoping that they match their last year’s growth of volumes of 70%.
The demand is rising, thus the estimates seem quite real at the given time. In the case of Waman Hari Pethe (WHP) jewellers, the demand rose around 25-30% at almost 26 branches that they have.
Ahead of festivals, we can hope that the economy strengthens more and the entire demand and supply chain is restructured, if not completely then at least a little.