The price of gold used to make ornaments touched a record Rs 31,955 per 10 gm on Saturday in Mumbai. Pure gold, on the other hand, rose to a new high of Rs 32,095 for 10 gm.

The high prices have seen jewellery demand go down. Major shops in Chennai are seeing fewer buyers,say many retailers. “And, more importantly, scrap sales are currently at 70 per cent. A majority of the customers these days come to exchange for new designs,” says A.K.S. Syed Ahmed, Chief Advisor, Tamil Nadu State Jewellers Federation. Investment purchase is almost nil, he said.

According to him, gold sales have dipped by at least 20 per cent from July, the start of the third quarter of calendar 2012.

Though India continues to dominate global consumer demand for gold (jewellery) at 124.8 tonnes, it registered a 30 per cent drop in the second quarter (April- June) compared to the 179.5 tonnes in the same period last year.

(This article was published on September 8, 2012)
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