【Meerut, Utta】Gold Rates: Asia’s Largest Bullion Market Remains Dormant, Traders Hope for Revival with Festive Offers

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Editor’s Note

This article examines the divergent trends in India’s gold market during the pandemic lockdown, highlighting a historic surge in digital gold investments against a lagging physical market.

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Lockdown Boosts Online Gold, Physical Market Lags

During the lockdown due to the coronavirus, the demand for online gold surged significantly. People invested money in Gold Bonds and ETFs as a safe investment option. Consequently, its price witnessed a historic rise. Gold reached a record level of ₹56,000, although people’s interest in physical gold remained somewhat subdued. The famous Asia’s largest bullion market (Sarafa) in Meerut, known for its craftsmanship and quality, is the biggest example of this, where the lanes have remained deserted even after the lockdown was lifted. Despite daily fluctuations in gold and silver prices, buyers are absent. From gold artisans to big traders, everyone is sitting idle. They are waiting for customers. Traders had hoped that business would pick up after the unlock. But customers are still missing from the market. Nevertheless, traders hope that the market’s silence will break by Diwali. The bullion market has also made preparations for this.

Gold Prices May Reach ₹50,000 by Diwali

Even though there is a boom in gold and silver worldwide, bears have dominated the market in Meerut since the unlock.

“Traders hope that the price of gold can reach ₹50,000 by Diwali. The rate of silver can go up to ₹90,000. Then perhaps some of the slowdown will be alleviated. For now, there is only silence. According to Dr. Sanjeev, gold is likely to remain soft until Diwali. For customers, this is the best time to invest in gold. At least 25 percent of investment should be put in gold.”

– Dr. Sanjeev Agrawal, Meerut Bullion Association

Attractive Offers to Bring Back the Buzz
“Jewelers are waiting for Karva Chauth, Dhanteras, and Diwali. The buzz will return to the bullion market around these festivals. For this, the bullion market has made significant preparations. Offers are coming where silver equal to the weight of gold purchased will be given free, and elsewhere making charges will not be taken. Considering the slowdown, preparations are also being made to launch fashionable items along with light-weight jewelry in the market. The festive season will start by the end of October. Then the biggest discounts and gifts of the season will also be given.”

– Dr. Sanjeev

Bullion trader Satendra Bhola explains that even though gold rates have increased, this dip in demand will be overcome during the festive season.

Preparing for a Golden Future
“The period of slowdown will end, and Meerut’s future will be golden. The businessmen here are preparing for it.”

– Pradeep Agrawal, President, Meerut Bullion Traders Association

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⏰ Published on: October 07, 2020