Gold prices high but precious metal remains in demand: Mahabir Danwar Jewellers' director

By

Isabelle Crossley

Published
Mar 24, 2023

Gold prices have been rising steeply and recently reached an all time high. However, Mahabir Danwar Jewellers' director Vijay Soni is confident the precious metal will weather the storm. 

“Gold price is at an all-time high right now and since the past five months we can see that the gold prices are going up with each passing day,” said Mahabir Danwar Jewellers’ director Vijay Soni in a press release. “The reason behind the inflation is the default in two US based banks, namely Silicon Valley Bank and Signature Bank. If for some reason, we get to hear a piece of positive news and these banks get financial aid, only then there is a possibility that the gold rates might come down. Or else, there's still a chance for it to increase.” 
 
Jewellery businesses are hoping gold prices calm down before the spring wedding season gets going so that the busy gold purchasing season will not be dampened. High gold rates can even cause people to postpone weddings as gold buying is such an important part of Indian nuptials. 

“Nonetheless, gold has outperformed many major asset classes while providing robust performance in both rising and falling markets,” said Soni. “It has been noted that gold has consistently performed better than other asset classes like equity over a long period of time even when stock markets have been booming.”
 
In response to the high gold prices, Mahabir Danwar Jewellers is currently offering 100% making prices of gold jewellery to stimulate demand, the brand announced on Facebook. The brand retails from its showrooms centring around Kolkata.