Ram Mandir Consecration Sparks Predictions Of Surge In Gold Price
As the much-anticipated consecration ceremony of the Ram Mandir in Ayodhya approaches on January 22, bullion experts predict a significant surge in gold prices fueled by heightened demand in the market. The temple's grandeur is expected to elevate the positive sentiments around gold, especially in North India, with its predominantly Hindu population.
The ceremonial doors for the ground floor of the Ram Mandir Temple, adorned with pure gold, have already started arriving in the temple. Approximately 100 kgs of gold are set to be plated on 14 doors, contributing to an estimated windfall of Rs 8,000 crore. The increasing excitement and festive atmosphere surrounding the upcoming celebrations in Ayodhya are likely to drive a surge in gold demand across the region.
Gifts In Gold: Anticipation Fuels Gold Demand
Gifts and offerings are pouring in from various parts of the country, with tonnes of goods dispatched from Janakpuri, Bihar (the birthplace of Goddess Sita) to Ayodhya. Devotees are sending sweets, fruits, vegetables, gold, silver, ornaments, clothes, and other items in anticipation of the historic event. As per reports, Challa Srinivas Shastri, a 64-year-old from Hyderabad, has embarked on a foot journey covering thousands of kilometres to offer 12.5 kg of 'Padukas' made with five significant metals to Chief Minister Yogi Adityanath.
Veer Mishra, Founder of Plus, highlights the spiritual significance of gold in India and notes that domestic gold prices have already seen a 2 per cent increase this week, contrary to the flat global market.
“As per our research a further 3-5 per cent climb can be expected as the auspicious date nears, driven by both religious fervour and pent-up demand from rural areas. While some foresee a correction post-event, the temple's legacy is likely to keep a bullish aura around gold, especially with ongoing infrastructure upgrades in Ayodhya promising long-term prosperity,” says Mishra.
Influx Of Offerings In Yellow And White Metal
The consecration of the Ram Mandir is poised to become a landmark event, attracting lakhs of devotees offering gifts as a mark of respect. The influx of offerings, including gold and silver, is anticipated to significantly contribute to the reserves of the Ram Mandir in Ayodhya.
Industry Consultant Premjit Sengupta predicts that the next few months will be bullish for gold, especially with numerous wedding dates and Akshay Trithiya in the first half of May.
“As the frenzy escalates in the next couple of months with lakhs descending on Ayodhya for offering gift as a mark of their respect, there is a strong possibility of gold which is already on a strong upward move escalating further to new highs. Coupled with a high number of wedding dates till late March followed by Akshay Trithiya in the first half of May, gold looks very bullish for the next few months,” says Sengupta.
Increase In Demand In Ayodhya
Jewellers in Ayodhya are witnessing a surge in demand for gold and silver coins, with some offering replicas of the Ram Mandir to commemorate the inauguration. About 800 crores of business is expected to be generated by the auspicious ceremony on January 22. The recent Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE, reducing customs charges on gold imports from 15 per cent to 14 per cent, is also poised to boost gold consumption in the country. The relaxed custom levies are expected to impact local jewellery sales positively, with orders potentially skyrocketing for gold and silver coins. The new norms may lead to increased national consumption, surpassing even China, particularly among the large middle-income groups in India, currently the world's largest holders of physical gold reserves.
Shreyansh Kapoor of Kashi Jewellers Kanpur says that this is certainly a great and pious occasion and the demand is set to rise. “We have seen earlier even in temples like Tirupati where it is considered sacred to donate gold. The Ram Mandir at Ayodhya is evoking similar sentiments and offerings in gold and silvers are already being booked, thus signifying the increase in demand.”
