Gold – The Solution for All Investment!

In this festive season the rise in price of gold has been a piece of worry and has grown into a cause of worry for many investors. In the past 2 weeks many have shunned buying gold and the traders are lamenting the lack of foot falls and are claiming that the high rise is affecting the affordability of buyers.

Due to the less demand of gold, the dealers and jewelers in India have lined up to flock half gram gold coins and leaf. Many have come up with innovations and schemes to tap the rural market.

One of the largest gold dealers in Mumbai has launched the half gram gold coins which are tamper proof and are getting demand from small time investors.

Another gold dealer said that the customers are now showing interest in these half gram gold coins as 10 gram gold is not affordable at this point of time. The price of yellow gold has slid down by 8% from a high $608 for 10 grams in the previous week. The investors are hesitating even after a 3% dip in prices in the current week.

Due to the rise in prices of gold, the fresh buying of ornaments has reduced even though many families and communities are getting ready for marriage.

The gold prices that have gone up by 42% in Mumbai and the salaries still being the same with inflation going high, the customers can rarely afford the price hike, said a gold trader. To continue in keeping the customers purchasing gold in small amounts, the traders and jewelers houses have come up with an innovation to take things forward. The traders in Mumbai have started the half gram gold coin and gold leaf that weighs 100 milligrams campaigns.

This idea was induced by FMCG companies that sell soaps an shampoos in small sachets in villages and rural areas who aspire to have similar privileges.

The traders say that the investors would be keen on purchasing 10-20 gold leaves which they would use later for jewellery or gift.

The main purpose of these traders is to have customers coming to their stores and purchase gold even when the prices are high.