Dhanteras is considered an auspicious occasion to buy gold. This Dhanteras is no different with people rushing to purchase precious metals, properties and lots more. Gold rate trends have however been different this year as prices have fallen by almost 10% on a year-to-year basis, while demand has fallen by close to 40% compared to last year in the month leading to Dhanteras, as per leading jewellers. Gold sellers are banking on Dhanteras, traditionally the most auspicious day to buy gold in the Indian calendar, to increase sales as prices may fall further in the coming days.
Why is Dhanteras auspicious for buying gold?
Dhanteras is the day that marks the beginning of Diwali, when Lord Kuber and Goddess Lakshmi are worshipped. Dhanteras means wealth and prosperity and therefore, this day is considered auspicious for buying gold, silver, or utensils. This day holds high importance among businessmen who invest in gold without fail on this occasion. Dhanteras has always been an important day for purchase of gold and silver in India. Jewellers see a rise in demand for this yellow metal every year as Indians flock to buy gold in the form of either jewellery or coins on this auspicious occasion. Some gold shops open early in the morning and remain open till midnight to manage the crowd.
According to an adage, the newly-wed wife of the 16-year old King Hima drove away the God of Death, Yama, by dazzling him with heaps of gold and silver. The king’s wife saved his life by blocking the sleeping chamber with the heap of wealth. Since then, buying gold, or silver on this day was considered auspicious as it is believed to keep evil and death away.
On Dhanteras, people all around the country not only invest in gold, but also in silver, along with other forms of wealth, such as property, vehicles, or any other asset.
Gold prices now
Gold has had a volatile year rate-wise. The highs reached in January haven’t been matched till now. Prices had been in freefall in late July and they have yet to recover fully. Gold rates, which traditionally increased in October haven’t performed up to mark. October is the time to look forward to the festive season in India which includes festivals such as Ganesh Chaturthi, Dussehra, Diwali and many regional festivals. This time is followed by the wedding season which also spurs gold demand, and consequently rates.
But the rates have been well below expected levels while the demand is also declining. Jewellers are reporting low buying percentages compared to previous figures. And with the expected increase in rates in the coming days, this season looks bleak for gold dealers.
What consumers are looking at?
The upwardly mobile youth of the country are slowly shifting the gears of the economy. Most of the young women are preferring to buy gold in smaller quantities such as 1, 2, 5 or 10 grams. Lightweight jewellery is trumping over the more ornate heavier pieces. Other popular products include idols, coins, plated ornaments and similar items.
Prices may fall further
Gold rates may fall further instead of picking up in the coming days. This is due to international trends as local demand is expected to be high. The US Fed may announce an anticipated rate hike in December which is making the dollar stronger compared with other currencies. As the USD becomes stronger, gold rates start falling as they are inversely correlated.
A deficient monsoon is also being cited as a reason for the fall in gold rates. The rural populace, which counts for over 2/3rd of overall demand for gold in the country, hasn’t shown much demand due to this. Jewellers, meanwhile are trying to make up for the low profits this year by being innovative in their offerings. Still, gold rates are likely to remain well below expectations.
Lower rates are a boon to consumers. Most consumers have been putting off the buying of gold anticipating further fall in rates. They will be in a good position to buy more products as the month progresses. This is also good for the jewellers and dealers hoping for more business. However, lower rates will eat into their overall profit margins. Still, demand will pick up and it will result in more transactions for them.
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News About Buying Gold this Dhanteras
BSE Extends Their Trading Sessions This Festive Season
BSE, a leading stock exchange announced that they will extend their tradings sessions till October 28 1900 hrs for Gold exchange Traded funds and Sovereign Gold Bonds. The extended their trading sessions on account on a festival celebrated before diwali called Dhanteras. In a notice, BSE stated that after the general working hours which is 0915 hrs to 1530 hrs, this special trading session will start from 1630 hrs to 1900 hrs. In India, customers and industrialists increase their gold intake as they consider it to be an auspicious day to invest in gold. BSE is taking advantage of such a opportunity to trade on gold.
20th October 2016
Gold Rates Picked Up On Account Of Festive Season
India is the world’s second largest consumer of gold. On account of festive season, the demand for gold increased in india. Gold rebounded after falling about 5% last week. Not many discounts were offered on gold as gold rates dropped this festive season which boosted sales automatically. The week ending January 23rd, retailers offered lowest discount of $2 an ounce. Last week, dealers offered about $4 discount an ounce. A jeweller from Pune, Fatechand Ranka stated that gold jewellery shops were crowded during Dussehra and the demand for gold was good. Gold sales is expected to boost evenmore in the upcoming months as Diwali is fast approaching.
19th October 2016
Gold Sales Decreases in Maharashtra This Festive Season
Dussehra is the time people invest in gold. But this festive season, gold sales displayed a declining trend in Maharashtra. Last year, about Rs.450 crore gold was sold but in 2016 only Rs.300 crore worth gold was sold. Experts stated that high gold rates could have caused low sales. Last year gold was traded at Rs.26,900 per 10 grams, whereas, this year gold was sold at Rs.30,150 per 10 grams. It is also noteworthy that Maharashtra suffered a great drought which could have affected the residents financially. The drought mainly affected rural residents who contribute about 67% of gold sales in Maharashtra.
18th October 2016
Dhanteras to be now Celebrated as National Ayurveda Day
It is recently announced by AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy) that Dhanteras from this year onwards will be observed as National Ayurveda Day. Different themes will also be allocated each year on Dhanteras. This year, the theme is ‘Áyurveda for Prevention and Control of Diabetes’. Various lectures, exhibitions and seminars will be organized on October 28th this year to mark the beginning of the first Ayurveda Day on Dhanteras.
This announcement was received positively by the teachers of Ayurveda at Institute of Medical Science in Banaras Hindu University. They are planning to organize various programmes on the theme. Professor Anand Chaudhary has also requested other Ayurvedic hospitals and institutions to come forward and participate in the celebration of the first National Ayurveda Day.
07th October 2016
MMTC Aims to Sell 700 Kg Gold Coins in the Festive Season
Metals and Mineral Trading Corporation of India sets a sales target of 700 kg gold coins for the festival season. This decision by company is mainly influenced by the fact that Indians buy gold during festival seasons as a sign of prosperity. The company also aims to expand the international sales targeting Indian communities through its Singapore subsidiary MMTC Transnational Pte Ltd. According to the General Manager of MMTC Ravi Kishore, the demand for gold coins will be high during the Diwali and Dhanteras celebrations. Kishore further adds that these gold coins are not merely seen as an investment option but as national symbol.
04th October 2016