Gold prices touch a record high in Kerala

KOCHI: The hearts of parents who are preparing for their daughter’s wedding must have skipped a beat on Friday as gold prices touched a record high of Rs 20,520 per sovereign (8 gm).The gold rate crossed the Rs 20,000-mark for a sovereign on Friday.The impact of this spiralling price is going to be immense on the state’s economy.The price hit an all-time high with the beginning of  Malayalam month Chingam, which is considered to be an auspicious month for marriages.Though there are people who buy gold as an investment option, weddings remain to be the biggest reason behind gold purchases in the state.Francis Alukkas of the Francis Alukkas Jewellery Group said that the spiralling gold price might have an adverse impact on the market.“The sales volume has come down. On the other side, the high value of gold may prompt people to demand more gold which might cause problem. We can only wait and watch what happens as there is a possibility of further rise in rates. I see the possibility of gold remaining beyond the reach of common man,” Francis said.“In anticipation of the sky-rocketing price,  marriage parties had started booking ornaments in advance so that they can start paying the price in advance. This will help them to get the ornaments at the price prevailing on the date of booking,’’ said Ramesh Pai, managing partner of Geeri Pai Jewellery here.“Sale of ornaments has come down while demand for coins remained almost static. “Only marriage parties are now the bulk purchasers,” Ravi Karolil, general secretary of Kerala Gold and Silver Merchants Association, Kochi, said.