Jewellers in Prime Minister Narendra Modi’s home-State Gujarat witnessed a literal gold rush following his on-air announcement to demonetise Rs 1000 and Rs 500 denomination currency notes on Tuesday.
There was sudden rush to gold markets and big jewellery showrooms at a time when the market was about to close at 8.30 – 9.00 pm on Tuesday, said Dinesh Zaveri, a goldsmith, adding that people wanted to convert their unaccounted money into gold, hence they were demanding gold bars – ranging from 10 gram up to as high as 1 kg.
“People were ready to pay premium up to 30 per cent on gold bars and insisted that goldsmiths keep shops open till late in the night,” said Zaveri, adding that the gold rush continued till late afternoon on Wednesday too but the only difference was jewellers were not bound to accept Rs 500 and Rs 1000 denomination currency notes.
The gold rush was heavy in bigger cities like Ahmedabad, Vadodara, Surat and Rajkot. Even some of the small towns like Unza in North Gujarat, Anand, Nadiad in Central Gujarat and Navsari, Bharuch and Ankleshwar in South Gujarat too witnessed similar situations.
Requesting anonymity an Ahmedabad-based jeweller said that some people paid Rs 35,000 for 10 gram gold coin against the price of Rs 30,000.
According to him most of the buyers were moneyed and each of them bought gold in lakhs of rupees paying hard cash in high denomination of Rs 1000 and Rs 500 notes. There transactions were either made in cash or back dated, he added. Interestingly, after Wednesday afternoon suddenly prices of gold crashed and people deserted jewellery shops in no time!!!
In Manek Chowk area of Ahmedabad, where traditional gold market exist some traders found opportunity and ready to pay Rs 650 in lesser denomination currency notes against Rs 1000 currency note. If sources have to be believed in last 24 hours he minted money in crores.