CHENNAI: Gold price stood at Rs 13,725 a sovereign on Wednesday, climbing one more notch from Tuesday’s rate of Rs 13,136 a sovereign, portending difficult times for middle class families, who normally go sho
However, the spiraling prices have encouraged people who are well off to view gold as a better investment option, as stock rates are dwindling and market sources are predicting gold will turn even dearer in the coming months.
Market analysts told Express that there has been a considerable dip in the volume of purchases made by middle class families during the last three months. K K Shivakumaar, branch manager of a jewellery shop on Usman Road, T Nagar said there was a marked drop in the quantity of jewellery bought by customers.
According to industry observers, gold price has gone up by 35 per cent since April this year, when the cost of one sovereign of gold was Rs 10,800. It rose to Rs 11,200 by August, ending at Rs 11, 920 in October.
The last week of November saw rates touching record levels and hovering at around of Rs 13,355.
“We rushed to finish our jewellery shopping as it is expected that gold rates will increase in the near future,” said Chandrasekaran, a farmer from Periyapalayam village in Tiruvallur district, who was in the city to shop for his relative’s marriage. He said his family bought only 25 sovereigns against their original plan of 40 sovereigns.
R Chandra Sekaran, marketing officer in a jewellery showroom claimed that the demand for gold coins and bars has gone up. “A large number of customers have bought these items anticipating that the prices will go up further.”
