When it was time to buy gold in keeping with the Dhanteras tradition, housewife Bhavika Patel decided to buy a 50 grams gold coin instead of the annual 10 grams. ?With gold prices dipping just in time for Diwali (Rs 11,500 per 10 grams on October 24 against Rs 14,500 on October 8), I decided to enlarge my gold coin kitty,? she says. ?I wondered whether this opportunity would come my way again and bought the gold coin and pruned my shopping for the festivities,? Patel says of her choice. ?I am buying gold coins so that I have a reasonable amount when my daughter is of marriageable age. Gold coins will fetch me money in the market without having to worry about melting charges, stone work, minakari work, etc being deducted during the sale of jewellery.?
People show a preference to build their inventory slowly by investing in gold coins. And not just investors but even traditional buyers of gold jewellery. Gold coins meet the twin goals of replenishing one?s kitty ? with very low wastage during the time of sale; and also as an investment. It is recession time and most people have realised that gold is a safe and secure investment, say analysts. ?The younger generation today are averse to wearing gold. They prefer to buy gold in coin forms for they realise it makes good investment,? says VG Nair of VGN Jewellers, Mumbai.
The prices of gold can fluctuate wildly but every one wants to have a little of the glittering metal in their homes, says Prithviraj Kothari, director, RiddhiSiddhi Bullions Ltd, one of the largest bullion dealers in India. With so many elite gold fashion designers in the markets and jewellery shops coming out with new designs, light weight gold, et al, do these have any impact on the sale of gold? ?Designs change daily. It is of no consequence unless one is buying for a wedding. Not many Indians prefer light weight gold jewellery. It is a fad. The trousseau will continue to have 24 carat heavy jewellery,? says Kothari. Religion is a factor too When it comes to offering gold at the temples, people prefer to make offerings in 24 carat jewellery and not light weight jewellery. Gold coins are preferred here too!
Sandeep Kulhalli, VP, retail and marketing, Tanishq, says August has been a path breaking month for the yellow metal. ?The lowest rate for gold was just before Diwali and there was buying contrary to market sentiments. Dhanteras has an emotional link and there are people who buy gold coins on this day, irrespective of the price. The ratio of sale of gold coins grew substantially this festive season,? he informs.
The media blitzkrieg with television channels beaming gold prices along with analysis of the saleability of the metal has made even people unconnected with bullion rates on a daily basis aware about its daily movements. Housewives have been buying a gram of gold for the past few months, says Kanak Shah of Mahalakshmi Jewellers. ?They now seem to have the pulse of the market. They are well informed about the prices and also the reasons.?
With most banks selling gold coins, people don?t have to go a jeweller to buy gold. ?The customer is satisfied that he is paying the right money and there is guarantee of purity. The coins come in a tamper proof foil and all this go a long way in ensuring the customer that he is getting the authentic metal,? says Virat Dewanji, executive Vice President, Head of Branch Banking, Kotak Mahindra Bank. With India Post having launched a venture in association with World Gold Council and Reliance Money, marketing Swiss medallions, buying gold coins has never been more easy or reliable.