Gold buyers throng shops for auspicious buys ahead of Diwali

New Delhi/ Mumbai, Oct 16 (ANI): Buyers thronged shops to buy gold during Dhanteras, a gold buying festival that falls before Diwali, the festival of lights.

Jewellery showroom owners say demand has shot up more than last year, ane believe it is a sure sign of an economic turnaround.

"Demand is very good in the market because the people are actually coming out of the recession. So this time, the demand is very good but somehow it is affecting the price fluctuation also. But that hardly matters. That's hardly five per cent. But the demand is better than the last year," said Shiv Jindal, Managing Director, Jindal Diamonds and Gems Pvt. Ltd.

However, some customers said the global meltdown has affected their pockets, forcing them to limit their purchases.

"There is an effect. Everyone wants to buy gold as per his or her budget during 'Dhanteras," said Manoj Shah, a customer.

Traders expect an over 50 per cent drop in sales as high prices strangle demand.There is an effect of recession like any other sector but Diwali is a festival that is celebrated by poor as well as rich," said Ganesh Puralkar, Director, Swami Samarth Diamond and Jewellery Showroom, in Mumbai.

The word "Dhan" stands for wealth and it falls on the thirteenth day of the Kartik month. Thus, on this day, it is believed to be auspicious to buy gold.

Gold demand rises during the festive season because many people consider gold an auspicious metal and like to buy or give it as a gift. (ANI)