The festival of lights has brightened prospects of gold coin over jewellery as extra charges, comprising wastage and making charges, as a percentage of the jewellery cost, have risen in line with the price of the yellow metal.

Gold prices rallied from Rs 20,000/10 gm last Diwali to Rs 29,000 in this September.

For those who considered jewellery as an investment, it now makes more sense to buy coins as the extra charges,, depending on design, make up 15-30 per cent of the cost of jewellery.

According to Mr Lalit Jagawat, Director, Bombay Bullion Association, notwithstanding the recent price rise, gold sales were very encouraging this Diwali.

Full value

“Availability of gold coins in smaller denominations and the possibility to realise the full value have driven many customers to buy coins rather than jewellery,” he added.

According to World Gold Council data, in the June quarter, gold coin/bar sales rose 77 per cent to 108 tonnes from 61 tonnes in the corresponding year-ago period.

The launch of gold coins in smaller ‘grammage' with a buyback assurance attracted many first-time buyers this festival season.

For instance, Nakoda Bullions has introduced gold coins in 0.5 gm and 5-gm silver coins to attract corporate buyers. Nakoda also sells gold in one, two, five and eight grammage, and silver coins between five gm and 1 kg.

Light-weight preferred

Besides gold coins, light-weight jewellery are the most-preferred.

Mr Ramesh Shoor, Director, Agni CZ Gold Jewels, said with the increase in prices and customers not preferring designs of higher weight, the demand for light-weight jewellery, which is stylish and light on the pocket, has gone up.

Gold prices quoted between Rs 26,000 and 27,500 per 10 gm during Diwali.

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