Galloping gold out of buyers' reach on Diwali-eve; silver shines but in short supply in Indore

Indore, Oct 15 (PTI) As it continues its golden run ahead of Diwali, gold has become unaffordable for ordinary customers in Indore due to its high prices, while traders said silver is in short supply in the wholesale market due to high demand from buyers in Madhya Pradesh's financial capital.

According to bullion traders, the white metal's short supply was also due to the increasing number of people treating silver as an attractive investment option due to its high returns over the years.

According to experts, gold was sold at Rs 1,31,200 per 10 grams and silver at Rs 1,80,500 per kilogram in the Indore bullion market on Wednesday.

The unusual situation created by high prices of gold and silver in the bullion market has changed the shopping landscape for the Diwali festival, which will start with Dhanteras on Saturday (October 18), an auspicious occasion to buy precious metals.

As the countdown to the festival of lights begins, the bullion market, decked out like a bride, is seeing more customers at silver jewellery shops than at outlets selling gold ornaments.

Bullion market trader Ratan Jain told PTI, "People are attracted by the rise in silver prices over the past year. Obviously, the expectation of good returns is driving the increase in silver investment." He explained that the reasons for the surge in silver prices over the past year include investor demand as well as increased industrial use and festive purchases.

Another bullion market trader, Jinendra Dungarwal, said, "Despite the rise in silver prices, demand is increasing. Currently, it is difficult to find silver even at a price Rs 20,000 above the prevailing wholesale rate. The situation is such that if we make a deal to buy silver today, it will be delivered to us after 15 days." He explained that due to the high prices of gold jewellery, many people are preferring to gift silver ornaments.

Dungarwal said, "The marriage season is still far away, but due to speculation that gold and silver jewellery will become more expensive in the coming months, people are rushing to buy jewellery for weddings scheduled for January-February next year." Meanwhile, a section of customers looked disappointed by the skyrocketing prices of gold and silver in run-up to Diwali.

Ritika Bhavsar, who visited the bullion market with her mother, said, "Lower middle class people are unable to muster the courage to buy gold. This is sure to impact the happiness of their families during the festival of Diwali." PTI HWP MAS RSY