Economy

Gold Demand Surges with Diwali, Long Recession Ends?

Gold Demand Surges with Diwali, Long Recession Ends?

The gold market that was down is now surging again. The second quarter report in 2017 has seen 37% surge in gold demand. With Diwali on corner, a huge demand is expected.

A Sigh of Relief for Jewelers

The year 2016 was the worse market for gold since 2009 and the demonetization made it worst. The gold demand fell by 21% in comparison to 2015 with 675.5 ton of demand. The year 2017 came with some relief for the jewelers but stringent laws by the government still haunted the market. The Q2 report saw a 37% surge in demand and as the Government has withdrawn the 50, 000 PAN limit on gold buyers, it is expected that the market is blooming again. Till now, 700 tons of demand has already been recorded in 2017 and with Diwali this week, it is expected to shine again.

The gold price per 10 gram has also shinned in a while with Rs 29834 on October 16. Dhanteras, the biggest occasion in India where metal is purchased extensively is tomorrow. One can expect that the sale will see some positivity. One thing that is against the jewelers is the shortage of cash. Before demonetization there was abundance of cash but since then there has been constant shortage of cash. People are reluctant to carry huge cash amounts and there has also been cut down in black market of gold.

Dhanteras, the Day Indians Buy Gold for Sure

Many Hindus follow the tradition of buying metal on this auspicious occasion. The rich go for gold while the poor settle with silver and bronze. Many people prefer gold coins to use it in Lakshmi Puja on the day of Diwali. The season of wedding is also approaching and this is also a significant factor that can impact the gold sale.

One can also buy gold online using PayTM app. PayTM launched this service in early 2017 where you can buy gold of 24 carats and the gold will be delivered at your home. The minimum amount of gold for delivery should be 1 gram. You can buy gold of as less as Rs 1 and it can be stored in MMTC-PAMP.

The offline methods are the most popular where you can approach to your local jeweler or on a branded showroom like PC Jewelers, Tanishq, and many more. The situation in the market is improving yet dull but Indians will still get a reason to buy gold.

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