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Silver coins zoom to record high on 'Dhanterus' demand

Heavy buying for Dhanteras saw a spurt in silver coin prices. They jumped Rs 1,900 to Rs 42,900 for buying and Rs 43,000 for selling of 100 pieces.

twitter-logoPTI | November 4, 2010 | Updated 13:14 IST

Silver coins zoomed to record high of Rs 43,000 per 100 pieces in the national capital on Wednesday, as demand shifted to silver amid high gold prices and weak global trend.

Heavy buying for Dhanteras on Wednesday and upcoming Diwali, also led to the rise in silver coin prices. They jumped Rs 1,900 to Rs 42,900 for buying and Rs 43,000 for selling of 100 pieces.

The coins also spurted, as silver prices rose Rs 100 to Rs 37,600 per kg on rising demand. Weekly-based silver delivery held unchanged at Rs 37,000 per kg.

There was some buying of gold in the markets but in limited quantity, as it gone beyond common person's reach, said Sheel Chand Jain, president of the All India Sarafa (Bullion) Bazar.

"The demand for gold is limited and customers picked silver coins as a token purchase on the D-day. They often use the coins for ppoja on Diwali," he said.

Gold prices surged in last few trading sessions and reached to new peak levels on Wednesday. Retailers preferred silver coins for token buying, ignoring traditional purchases of gold at existing higher levels and weak global trend.

"Consumers are buying gold, though prices are higher than last Dhanteras. We are seeing demand for 24 carat gold, especially in bangles and chains," Mumbai-based Oro Jewellers Director (Sales) Avinash Pahuja said.

Higher purchasing power is driving up sales at most of the retail outlets. "We expect gold sales to be higher by 35 per cent from last year," he added.

Gold though remained on record highs compared to last few years, its demand subdued at current higher levels. It had touched a new high of Rs 20,120 per 10 gram on October 15.

In Wednesday's trading, gold prices fell for the second straight day by losing Rs 160 to Rs 19,740 per 10 gram.

Gold in global markets dropped 0.5 per cent to $1,351 dollar an ounce.

The gold of 99.9 and 99.5 per cent purity remained under selling pressure and fell further by Rs 160 each to Rs 19,740 and Rs 19,640 per 10 gram, respectively. Sovereign remained stable at Rs 15,950 per piece of eight gram in limited deals.

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