Author: Paul Ploumis07 Apr 2014 Last updated at 07:59:03 GMT
NEW DELHI (Scrap Monster): The recent fall in gold prices have resulted in increased jewellery sales in India. According to retailers, gold jewellery sales have increased over 25% during the past one week. The buyers in India see limited potential for further fall in gold prices from current levels, industry sources said. Incidentally, domestic gold price in India declined by more than 3% over the week.
The sudden fall in gold prices in India is attributed to two factors. One is obviously the appreciation in Indian currency. The Indian currency has gained almost 1.7% over the week. The rupee now is seen hovering around 60 against a dollar. The falling premiums too contributed significantly to the softening yellow metal prices. The gold premiums fell to $20-$25 per ounce from the highs of $75 per ounce last week.
Silver jewellery also witnessed increased demand among customers. The domestic Silver prices averaged at Rs 43,000 per kilogram, falling 4.5% over the week. According to latest report published by Commtrendz Research, Silver has almost reached the bottom. On a rebound, Silver will rebound sharply than gold or any other precious metal in the group.
According to Bachhraj Bamalwa, Director, All India Gems & Jewellery Trade Federation (GJF), the jewellery sales may see further upside during this week as well. Over the years, bulk consumers are found to abstain from fresh purchases during financial year-end. The bulk orders have already started pouring in, Bachhraj added. There has been a significant rise in retail store footfalls since the start of the week, said Rajesh Mehta, Chairman, Rajesh Exports.