Yellow metal loses its sheen after 2 years

People who had been waiting for the fall, were seen thronging jewellery shops

An unexpected dip in the prices of the yellow metal just after the beginning of the new year for Hindus (Ugadi), has brought cheers among customers, dealers attracting buyers in large number.

After a long spell, this is the first time the prices have come down to the level it was in 2011. The rate has suddenly crashed by Rs 2000 for 10 gram of gold.

Just a month ago the price of 10gm gold was Rs 29,500 (22 carat), and Rs 31,600 for 24 carat while Silver was about Rs 56,000 per kg. Whereas today the prices have plummeted down to Rs 25,550 for 10 gram of 22 carat gold and an approximate of Rs 27,600 for 24 carat. Per kg Silver is about Rs 48,500.

Following fall in prices, the crowd in majority of the jewellery shops on Monday was more than usual. With the marriage season also setting in, the fall in price of gold has brought cheers among many. While most were in a haste to buy at the earliest thinking the prices might go up again.

Housewife Tanuja says “At the earlier rates gold was no longer affordable for a common man. After knowing the prices have come down, I rushed to purcahse some jewels which I had been planning for long.”

Prominent jewelery mart in Mysore MD Sharuddin said that for the past two days the number of buyers have increased and a huge rush is witnessed at the shop.

“Over the past two years the price of gold had been steadily increasing, reaching such astronomical level, that it had turned away gold buyers from the bullion market. But, now we are expecting sales to go up this season as many are investing on it,” said Madan Lal another jewllery mart owner, adding the prices have dropped to what it was in 2011.

"We had never thought of gold prices would crash suddenly by this extent,” said another customer Raghu and added, "I wish the price of gold would decline even further, so that many can invest on it as there is always gurantee of getting back our money."

With May 13 being 'Akshaya thadige', the day considered most auspicious for buying gold, several women were seen booking their favorite jewellery, when the prices have come down.