MUMBAI/KOLKATA/AHMEDABAD: Jewellers across the country are reporting brisk business ahead of Diwali with a fall in gold and silver prices resulting in a higher footfall into stores. Dealers are expecting a 30% jump in the sales of silver articles over last year's Diwali with a cheaper white metal galvanizing the rather dull gifting market. Buyers thronged Mumbai's Zaveri Bazaar market on Dusshera, one of the three auspicious occasions for buying the metal in the Hindu calendar last week. But many buyers, like Sana Haji, a college lecturer, who's wedding is around the corner, decided to loosen their purse strings after holding back for a month on fears of a further price escalation. "I have purchased most of my wedding jewellery today because I think prices will shoot up by Diwali," said Sana, who teaches at Mumbai's KC College. Gold has come down by Rs 1,500 per 10 gram to Rs 26,967 over the past month. The high price -- the metal hit a record high of Rs 28,451 in Mumbai on September 6, tracking the international rate - amid unprecedented volatility kept most consumers away. Now, buying has picked up not just in Mumbai but cities like Bangalore and Kolkata too. "We recorded flat sales through much of September but the correction towards the month end came like manna from heaven after which sales have picked up," said Bangalore-based Sandeep Kulhalli, vice president (retail), Tanishq, the country's largest jeweller. "Sales of coins through many of our 126 stores compensated for the drop in jewellery volumes last month, but now jewellery volumes have picked up with many who held back because of the high prices coming forth to buy." At 800-900 tonnes imports every year, India is the world's largest consumer and a price taker. Local gold prices track rates fixed in financial centres like London by institutions like ScotiaMocatta, HSBC and Barclays Capital. Currency movements also play a role in determining the price.

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