11 August,2011 07:18 AM IST | | Alifiya Khan
Even as buyers and investors are a confused lot with bullion prices shooting up through the roof and then plummeting a few points, jewellers too can't seem to decide on what will be the fate of the market in the coming few weeks.
While all jewellers agree that the rise is unstable and due to fear in people's minds arising out of the possibility of a global market crash and the prospective weakening of US dollar and crash in European economy, they don't see eye to eye when asked if the hike in prices would continue or not.
Saurabh Gadgil, a partner at P N Gadgil Jewellers, said the riseu00a0 would continue and probably reach about Rs 27,000 per 10 grams. "The price rise is not driven by speculation but fear of the weakening dollar. This means people will start buying gold, as they feel it is the only safe investment.
In view of rising demand and limited supply, that prices would drop sharply is not likely. My advice to investors and buyers is that if they have the money, then buy gold," he said. Fatehchand Ranka of Ranka Jewellers and president of Pune Saraf Association said he envisaged a correction in prices.
"I think after two to three weeks there should be some drop in the price. Though it will not go below the Rs 23,000 per 10 grams mark anytime. As far as sales go, we don't see a huge difference as this is the off season for buying gold," said Ranka.
