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100 gm gold biscuits sell like hotcakes

Source : SIFY
Last Updated: Wed, Aug 13, 2008 05:30 hrs
Gold

Bullion markets in Ahmedabad and Mumbai are running out of stock of 100 gm gold bars due to limited supply. With prices falling more than Rs 500 in a single day, traders rushed to banks to buy 100 gm gold bars. Since stock was limited, bookings have started.

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“Traders are expecting gold prices to fall further and so bought as many 100 gm gold biscuits as were available. As more gold bars were bought at banks, the denomination vanished as the stock was limited. Traders prefer using 100 gm and 1 kg gold bars for making gold jewellery,” said director of the World Gold Council, Dharmesh Sodah.

This fall was unexpected, and so, the supply was limited. “In July, gold prices were at an all-time high, and so, production of 100 gm bars in the global market was also less. But, the price has suddenly tumbled in the last few days, leading to a heavy increase in demand from traders. Gold coins of 1 gm, 2 gm or 5 gm are easily available, but for 100 gm gold biscuits or bars, one will have to book them one or two days in advance,” said city-based bullion trader, Girish Chokshi. “Traders are now ready to pay a little more than the market price to buy 100 gm bars of gold on premium,” he added.

Even banks did not expect the short supply. “We have enough stock of 1 gm gold coins. But, in the case of 100 gm biscuits, traders will have to wait for another day. As supply is limited, 100 gm gold biscuits are not available on the spot,” said chief general manager of State Bank of India, HC Pattnaik.

In July, gold prices reached an all-time high of around Rs 13,700 in the domestic market.

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“The total import of gold in Ahmedabad was around 9 tonnes in July, and when it started falling, the demand increased. In just 12 days of August, gold imports have reached around 13 tonnes,” said director of GSEC Ltd, Samir Mankad. He added that on Monday, gold import was around 4 tonnes.

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