Questions around falling gold prices

Gold prices make news when they rise or even when they fall. And last weeks crashing gold prices didnt just sent consumers on a buying spree but also a topic of hot conversations on both sides of the counter.

A few topics of conversations around this phenomenon which I was a part of or over heard my colleagues take it in the store.

Consumer: Is this a good time to buy gold or should I wait a little more?
Aditya: Remember what happened in stocks. People thought sensex will touch 25,000 and refrained from profiting when they could. It tanked and touched 14,000 instead. Similarly when gold was on an upswing there were rumours it would touch 15,000 per 10 gms. It tanked to 11,000 and now people think it will touch 8,500. I would beg to differ. Any kind of investments should be done in phases and thus making a median gain than trying to hit the bottom.
Consumer: Kyun Bhaisahab! Fall in gold prices must be hurting jewellers?
Aditya: No. Not Really, In fact quite the opposite.
Consumer: With eyeballs popping out. hows that?
Aditya: When the gold prices were sizzling hot at Rs. 13, 600 or so, the flow of customers had slowed to a trickle. People weren't sure if this is the benchmark price they should get used to. For a lot of people it made their budget go haywire. Now when the prices have fallen people are queuing back to jewellery stores.
Consumer: What about the jewellery/gold bought at higher prices. Aren't they of lower value?
Aditya: Sure it is, but every time a piece of jewellery is sold, the equivalent of gold is brought the same day at the same prices. I have a post on this. So a jeweller's margin(that of making charges) is intact.
Consumer: But why this sudden fall in gold prices?
Aditya: One aspect is sure that US dollar has become stronger vis-a-vis Indian rupees. And as a thumb rule they move opposite each other. Both gold and US dollar vie for the Big hedge funds, Financial institutions' money. And as dollar shows promising signs of beating the inflation, a lot of money is taken out of gold and put into them. The opposite happened when dollar was tanking. Gold rose. How its related to crude is not clear. Visitors to this blog are welcome to comment.

Attractive time to buy gold

Look at whats happened to gold. Its touched a low of Rs. 11, 860 per 10 gms for 24K on 08/08/08 in Delhi. And no ones complaining: Neither the buyers nor the jewellers.

Our sales personnel haven't heaved a sigh of relief for the last couple of days. When they are not attending customers they are making calls to our existing customers informing them of the current gold prices. I am personally calling up friends, relatives and acquaintances.

This time of the year is usually slow in sales for the jewellery industry. But this fall in gold prices has been a shot in the arm for the sales of both gold jewellery and gold bars/biscuits. So much so that people are planning ahead and buying gold for the marriage season. As gold prices are expected to rise again during that time.

So, Should you buy gold now? There are both sides of the line still. You will find experts advising to buy gold now and not really wait for it to hit bottom. While some are of the belief that gold prices are slated to fall further to Rs. 11, 000.

Whatever your call. You can not blame prices not being within reach for your important gold purchases anymore. Be it investments, marriage or gifts.

Tanishq invites for preview of Jodhaa Akbar Collection

By now everybody knows who's behind the elaborate jewellery worn by Aishwarya and Hrithik in Jodhaa Akbar. The jewellery in this period movie from the mughal era has been painstakingly recreated by Tanishq. Some of the stats from craftsmanship to kilos of gold used is available here.

What few might be knowing is that Tanishq has set up a preview of the Jodhaa Akbar jewellery collection in select cities. You can sign up for it here.

Featured above is a choker used in the movie.

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Thank You ....Tolmolbol

Tolmolbol came up with Diwali Dhamaka as the feature for its first newsletter for all its users who have subscribed to it. Tolmolbol.com is a platform for user generated reviews on local businesses.

We were pleasantly surprised(no wonder its being written so many days after diwali) to see our name for the places to try during the festive season in the New Delhi edition.

This is how they said it:

The fashion-conscious Delhi-wallahs have a superb choice of both fashion and food!

Whether you want to dress up ethnic with Biba and Biba or casual; the options range from the good, the bad, and the ugly. Spykar Jeans, Pepe Jeans, Pantaloons, Unistyle Image, and more. You’ll find classic women’s wear at Bizarre and if you’re looking for something more unique try People Tree. And while you’re shopping for Diwali, why don’t you just pop in to Kathana Jewellers and tell us what you think about it?

No festival is complete without sweets, and the very traditional sounding Gulab Rewari Gajjak Sweets-Rohtak Wala is a great place to stopover for sweets.

Have a great Festive Season!

Thank You! TolMolBol

P.S. BTW Gulab Sweets is bang across the road from us.

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Thank You ....Trendylicious!

Thank You... Trendylicious!

So the news of our unique offerings and services is reaching places. I want to thank the trendylicious team for doing a wonderful job of covering our offerings and bringing us in front of their readers.

FOr the new readers of this blog, spend some time around on this blog and leave comments on how you like this blog and what you would like to know about jewellery.

Our website is getting revamped,It will sport a new look by the end of this week. So bookmark it to visit again.

For those of you who haven't read the article its here.

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