Gold prices in Mumbai reach new high, breach Rs 40,000 per 10gm mark
Gold prices in Mumbai touched the Rs 40,000 per 10 gm mark on Monday, breaching the 40k psychological barrier, industry players said.
“This is indeed an unprecedented high, but lower by at least 20 percent in US Dollar terms. Presently, it is $1,545 on the Comex, lower than $1,920 in September 2011,” expert and former All Indian Gems & Jewellery Federation Chairman Bachhraj Bamalwa told news agency IANS.
According to Bamalwa, if the current global political crises and the trade wars continue to escalate, then the gold prices may shoot up further, crossing Rs 41,000 per 10 gms in the next few months.
The skyrocketing prices, however, have had little impact on the demand, which has been affected by around 10 percent in lieu of the wedding and festival seasons beginning next month.
“Instead of fresh purchases, people may opt for recycling of old gold, at least up to 25 percent, in view of the higher prices,” Bamalwa said.
Mumbai Jewellers’ Federation President Rakesh Shetty shared a similar opinion, claiming that the incidence of recycling of old gold is actually as high as 70 percent and sales have declined by over 65 percent.
“People prefer to bring in their old gold and pay the making charges for their needs as the current rates are too high. If the current global crises continue, then we expect it to cross Rs 41,000/10 gram by Diwali, which is not a healthy sign for the industry,” Shetty was quoted as saying.
The country consumes an average of 700-800 tonne of the precious metal annually, Bamalwa said.