``Normally consumers tend to buy precious metal during Pushya Nakhtra due to auspicious reason. Demand has been affected by relatively higher prices and drought- like conditions in the state. Only consolation was the silver, in which demand was relatively good due to lower prices''said Girish Choksi director, Choksi Mahajan. According to Choksi, cash market lacks luster.

Gold import during October was only 2 tonne, against last month's 25 tonne and monthly average of 18-20 tonne. He said adding that the import for the October was lowest ever since importers refrain from the booking due to higher inventoryand dwindling offtake Though most of the traders were reluctant to comment about the sorry state of business, the observers feel that import number itself reveals the real state. Though the volatility is gradually decreasing, trade is still trying to absorb the affects, it seems.

Meanwhile seizure of a gold bar cargo worth Rs 3-3.5 crore took interesting turn. The concerned party is planning to sue the authorities for holding their goods, and to pay for the losses of around Rs 20 lakh. According to a leading importer, Manoj Bhimanithe, the controversy had badly affected the trade sentiment. The seized good was purchased by a Mumbai- based trader. All the duty and taxes were paid accordingly. Despite showing all the documents, authorities withheld the goods, and seized the cargo after five days. He alleged that it took 120 hours to decide whether goods were legal or not? As the global prices fell by $18, the party has suffered monetary losses. A law suit may be filed against the concerned authorities, heindicated. According to traders the issue was a goof up. The authorities asked concerned traders to produce the accounts. as the trader failed to produce documents at that time, the authorities sized the cargo.

The goof- up was that while the party was afraid to produce goods fearing entry of Income Tax authorities, authorities became suspicious about the source of the gold. Later on, both the parties might have realised about the faux pa but matter became a prestigious issue.

According to dealers, the incident could affect upcountry trade. The blunder could have been avoided had both the parties showed some sort of practical understanding.