Indian retail buyers and traders have been switching to Silver from Gold, apparently seeing relative value as gold hit’s record highs.
Partly as a result of this, gold jewelry sales appear to have fallen 40-50% due to high prices.
Commodity Online: Jewellers in the state opined that people who just want to invest in precious metals have started buying silver instead of gold, but consumers who want to buy jewellery have not shifted from gold.
Sales of silver coins and biscuits have gone up this week. Raw silver sales have risen by at least 30 per cent from any normal day.
This week pure gold (.999) prices opened to an all-time high of Rs 16,720-16,740 per 10 gm and touched the price of Rs 16,900.
Since August, silver prices in Gujarat have risen to Rs 27,000 a kg from earlier Rs 22,000, a rise of 22 per cent. While gold prices have risen only 8 per cent in the same period.
Jewellers said currently sales of gold jewellery were down sharply, despite the wedding season. Gold jewellery sales are down by 40-50 per cent after the sudden price rise. However, sales of raw silver have gone up 30-35 per cent as it is likely to give more returns.