Dhanteras demand pushes silver coins to record high

Dhanteras demand pushes silver coins to record high

New Delhi: Silver coins zoomed to record high at Rs43,000 per 100 pieces in New Delhi on Wednesday, as demand shifted to silver amid high gold prices and weak global trend.

Heavy buying for the festival of Dhanteras and upcoming Diwali, also led to the rise in the silver coin prices. The silver coins jumped up by Rs1,900 to Rs42,900 for buying and Rs43,000 for selling of 100 pieces.

The coins also spurted, as the silver prices rose by Rs100 to Rs37,600 per kg on rising demand. Weekly-based silver delivery held unchanged at Rs37,000 per kg.

There was some buying of gold and its objects in the markets but in limited quantity, as it gone beyond common person’s reach, said Sheel Chand Jain, president of All India Sarafa (Bullion) Bazar

“The demand for gold is limited and customers picked silver coins as a token purchase on this festival, which can also be used in pooja on Diwali," he said.

The gold prices surged in last few trading sessions and reached to a new peak level of above Rs20,000, as retailers preferred silver coins for token buying, ignoring traditional purchases of gold at existing higher levels.

“Consumers are buying gold though prices are higher than last Dhanteras. We are seeing demand for 24 carat gold, especially in bangles and chains," Mumbai-based Oro Jewellers director (sales) Avinash Pahuja said.

Higher purchasing power is driving up sales at most of the retail outlets. “We expect gold sales to be higher by 35% from last year," he added.

Gold remained on record highs since last few years, but demand subdued at current higher levels, after touching a new high of Rs20,120 per 10 gram on 15 October.

On Wednesday, the gold prices fell for the second straight day by losing Rs160 to Rs19,740 per 10 gram on sluggish local demand at prevailing higher levels amid weakening global trend.

Gold remained under selling pressure after the metal declined in global markets amid speculation that a second round of stimulus measures by the US Federal Reserve to boost global economy might raise appeal for dollar and hurting demand for the metal.

Gold in global markets dropped 0.5% to $1,351 an ounce.

The gold of 99.9 and 99.5% purity remained under selling pressure and fell further by Rs160 each to Rs19,740 and Rs19,640 per 10 gram, respectively. Sovereign remained stable at Rs15,950 per piece of eight gram in limited deals.