MUMBAI (Commodity Online): Dhanteras, which falls on Wednesday (Nov 3) this year, is an occasion for Indians to buy gold as they consider it as auspicious. In normal circumstances, Indians buy the most of gold on this occasion. However, this year things are different. It seems buyers are shying away from jewellery shops and gold coin selling banks due to the high price of the metal. However, some jewelers have said that retail sales are slowly picking up before Diwali but they are sure that the sales will not set any new record. Mainly, people are buying small denomination coins. In smaller towns, people prefer coins and bars as investment compared with ETFs. Some banks have offered a discount on coins. The benchmark gold contract on the Multi Commodity Exchange (MCX) was steady at Rs 19,745 ($444.91) per 10 grams, still down 1.4 percent from the all-time high of Rs 20,028 hit on October 14. The yellow metal is a sign of prosperity in India, the world’s largest consumer, and people buy it during these festivals. Banks, and jewellery shops, are decorated with marigolds for the festival, and typically remain open till late evening on Dhanteras and Diwali, when establishments witness the highest footfall. Gold sales during October 31-November 6 may rise by up to 40 per cent on year, supporting the outlook for record imports in 2010, World Gold Council (WGC) said. Indians traditionally buy gold jewellery, which is the most common gift during religious events and an essential wedding present, but buyers are becoming increasingly aware of the benefits of holding gold in other forms like bars, coins and Exchange Traded Funds.

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