Gold price rise effect: Traders reluctant to buy new jewellery for the ensuing Deepavali!
Posted on: 11/Sep/2019 12:21:38 PM
Due to multiple reasons such as present stagnation in the current international economy, downtrend in the productivity Index and Job Opportunity Index, the price of gold has been continuously shooting up and presently, the gold price per sovereign has touched Rs. 29000! It is estimated that this may cross Rs. 30000 shortly!
Due to the tremendous increase in the gold price, the sale of gold has gone down by up to 30%!
In the above scenario, there is reluctance among the traders to buy new pieces of jewellery for the fast-approaching all-important Deepavali festival!
Generally, the traditional practice is for the gold and jewellery traders to register a month in advance of the Deepavali festival on the purchase of the new design jewelleries as well as additional jewellery.
However, this year, as gold prices have touched unprecedented peaks, the sales of gold jewellery items have been sluggish! In this respect, there is a huge unsold stock of jewellery bought earlier! So, the jewellery traders are rather reluctant to buy new jewellery items this year!
While enquiring about this situation, the General Secretary of the old and Diamond Jewellery Traders’ Association, shared:
‘Generally, every year, we order a month in advance the required items of traditional jewellery as well as the new-design jewellery to the designers/makers of gold jewellery! Every year, more than 500 new-design jewellery are introduced!
Especially, we keep items such Kolhapur necklace, Kerala chain, earpiece, and rings in 100’s of design! However, this ear, the price of gold has hit unprecedented peaks! Presently, a 22-karat gold sovereign price has crossed Rs. 29000! Because of this, public buying jewellery items has come down substantially! The sales have gone down by 30%!
The gold and jewellery traders are reluctant to place new orders for jewellery items with the above situation.
Still, with the initiation by the central government to revise the economic policies leading to a positive trend in economy/commerce growth, we expect good results thereby leading to a substantial reduction in gold prices!’
The president of the Chennai Gold and Diamond Jewellers’ Association, Jayanthilal, shared:
‘There is another one-and-a-half-month period still for Deepavali festival. So, a decision cannot be taken right now regarding the procurement of new jewellery right now! We can give an idea of this only next month!’
To get the latest Gold/Silver price visit : Gold rate in Chennai
