Coronavirus: Investors see 'golden' opportunity in bullion market

ST Staff
Wednesday, 8 July 2020

Gold is seen as a great investment option. Despite rising prices, demand for gold has been picking up because of the wedding season.

Pune: Gold is seen as a great investment option. Despite rising prices, demand for gold has been picking up because of the wedding season. There is a possibility of further price hikes in the upcoming year. As a result, the bullion market is booming again.

The first COVID-19 patient was found in Pune in March. Thereafter, the lockdown was imposed in the entire state including Pune from March 23. About three months later, the city market re-opened on certain terms and conditions. At that time, frequently changing timings of the shops and the slack bullion business were the major concerns. But over the last few days, the picture has changed. The gold market is re-emerging.

Gold prices have risen nearly 30 per cent since January. Despite this, the bullion market is slowly gaining momentum again.

Considering the wedding season and the possibility of a further rise in gold prices in the coming year, the picture is that consumers are showing interest in this type of investment.

Amit Modak, Director, P.N. Gadgil & Sons and President, Indian Bullion Jewellers Association, Pune Division, said, "This is because gold and silver prices are likely to rise further in the coming year. As a result, the demand for gold as an investment has increased. As a result, the market is slowly recovering."

Shailesh Ranka of Ranka Jewellers said, "Consumers have started opting for gold. Demand for gold is on the rise. The rise in prices was expected to increase the number of customers selling gold. But its proportion is not much. On the other hand, the number of people buying it as an investment is increasing, as there is a possibility of further price rise in the future."

The global situation created by the COVID-19 outbreak, Indo-China dispute and declining interest rates of the banks are some significant reasons for fearful atmosphere among citizens.

Therefore, gold is seen as a great investment option and useful in times of crisis. The last few months have seen rising gold prices, with the highest returns being given by gold. Today, the price of gold has gone up to fifty thousand.

The rise in price was expected to increase the number of customers selling gold. But its proportions are not much. On the other hand, the number of people buying as an investment is increasing, as there is a possibility of further price rise in the future.

Siddharth Shah, Director, Chandukaka Saraf & Sons Pvt. Ltd., said, "Currently the only option that can give the most benefit is gold. So the younger generation is also looking at gold in terms of investment. Therefore, the demand for gold is increasing due to both weddings and for investments.
 

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