Kolkata: The sudden plunge in the gold prices have come as a boon for jewellers in Kolkata as customers make a beeline for the yellow metal.

Terming it “mini-danteras” — the day before Diwali, considered auspicious to buy gold — most jewellers are seeing a considerable rise (around 20 to 25 per cent) in sale. “The sudden rise in sales is unbelievable as the months of August and September are considered as dull months. In the last two days our sales have almost tripled, where many popular jewellery items are out of stock,” said TC Das of Das Jewelers.

Gold prices on Friday fell by Rs320 (Dh18) to trade at Rs25,050 per 10gm, and silver cracked the Rs34,000 level to trade at about a five-year-low rate at the bullion market in the city due to a weak trend in the global market. Prices of the metal fell further in Singapore, which normally sets price trend on the domestic front; it dropped by 1.2 per cent to $1,077.40 (Dh3,957) per ounce (28g), the lowest level since February 11, 2010.

However, this nosediving of prices is good news for many people who have been longing to buy the precious metal. “My daughter is very lucky. She is getting married next month and with falling gold prices we are able to buy much better jewellery for her within the same budget,” said Sampa Kundu, a customer.

Others have been hoarding the metal believing prices will rise again. “Prices of gold will surely rise so it better to buy now rather than think of the investment. Also gold is considered auspicious so the more we buy the better it is,” said Chameli Saha.

However, a strong US dollar and likely increase in interest rates by the US Federal reserve later this year have prompted experts worldwide to believe that chances for a quick rebound in gold prices are low.

The decline in the gold prices has wiped out the value of gold reserves with the Reserve Bank of India (RBI) by more than 44 per cent compared to the peak levels in 2011. The Indian central bank has 557.75 metric tonnes of gold in its reserves.

At the present prices of $1,072.35 per ounce as on July 20, the value of the RBI’s gold reserves plunged to about $21.1 billion, down by 44.18 per cent from $37.8 billion in September 2011, when gold prices had peaked to a record high of $1,921.15 per ounce. Gold is a key constituent of the RBI’s foreign exchange reserves.