Even small investors want a bite of gold biscuits
It’s not only the regular big investors that are attracted to gold biscuits, even retail investors are tracking the daily ups and downs of the yellow metal to take a big bite.
By Tapash Talukdar, TNN |
RAJKOT: It’s not only the regular big investors that are attracted to gold biscuits, even retail investors are tracking the daily ups and downs of the yellow metal to take a big bite.
The soni bazaar of Rajkot has witnessed a 50% rise in small retail investors opting for gold biscuits as one of the best investment tools. In the past one month, gold prices have stabilised at Rs 9,220 per 10 gm, against Rs 9,800 per 10 gm.
During the past week, demand for gold biscuits rose by 20% in the Rajkot market due to factors like marriage season, rupee rise against dollar and easy availability, besides a fall in the trading prices.
The daily trading for gold biscuits has increased to 60-70 kg/day from an average of 50 kg/day in Saurashtra, boosting the daily turnover to Rs 5 crore. However, during the past week, nearly 250-300 kg of gold biscuits has been bought by investors in Saurashtra, which is a 20% rise.
“Small investors are buying in significant volumes due to 100% resale value and instant availability,” says Jayendra Ranpara, a Rajkot-based bullion trader.
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He said the ratio of small retail investors is up by 50% compared to last year as they are anticipating a further rise in prices. It may be recalled that gold has been trading between Rs 9,000 and Rs 9,500 and last year gold prices peaked at Rs 10,500 due to international pressures. However, a few bullion merchants feel that gold prices may go down to Rs 8,800 per 10 gm, in the short term while in the long term, the prices may touch Rs 12,000 per 10 gm (within one-and-a-half year).
During last week, the average buying for gold coins from banks has also increased. Navin Shingal, head-investment and services of ICICI Bank says: “Retail investors are buying more gold coins in the range of 5 gm to 50 gm.”
Pankaj Dodhiya of Shreeji Traders says: “The average small retail investors are seeing this as an opportunity to invest in gold biscuits instead of bank deposits.” As the marriage season is still to warm up, the demand for gold jewellery has also gone up to 10-12 kg touching Rs 14-15 crore on a daily basis against Rs 8-10 crore.
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Balwant Badani of Badani Jewellers says, “An average customer has been investing more in gold rather than shares or realty, which are more speculative.” Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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