Gold business falls 50%, gold seekers see red

Gold business falls 50%, gold seekers see red

Mangalore Today News Network

Mangaluru, Jan 27, 2019: Since a month now, gold buyers have been receiving shock after shock; reason is the regular increase in the gold prices which  reached record levels.  The price crossed Rs 3,000 for a gram of gold has caused sleepless nights to gold dealers who lack buyers, the business has fallen by 50% causing much trouble to the retailers as well. 

The reason behind the price rise of gold is due to the rise in demand for the precious metal as well as the fall in the value of rupee as well many other currencies in the world. Besides the difference in import and export has caused the fall in the value of rupees thereby also increasing gold prices to record highs feel gold traders and economists.

During the month of December the price was Rs 2,985 for a gram of 22 carat gold rose up to Rs 3,005 for a gram on Jan 3rd. Later, even if there was a marginal fall in the prices, 1 gm of gold stood at Rs 3,030 on Jan 10th.  After this, the price has continuously risen. Presently, a gram of 24 carat gold is at Rs 3,334 according to the D K District Jewellers’ Association.

Reason: India, primarily imports gold from Switzerland, gulf countries and South Africa. Since the domestic production is not enough, there is a rise in imports and since there is a fall in exports, it has lead to an import-export imbalance which has negatively affected the value of the rupee. This along with the increase in demand for the precious metal has caused the rise in gold prices says economic advisor CA S S Nayak. Due to the economic uncertainty globally, investment on gold has increased which has lead to the sudden rise in the prices, which may be another reason for the record price rise of the precious metal, he explains.

“The rise in gold prices is due to the fall in the value of the currencies of various countries. In the last two months, the price has risen by over Rs 200. There is a fall in the number of buyers since it is the ‘Pushya Masam’ of the Hindu calendar, there is an adverse effect on the merchants as well,” said Prashant Shet, Secretary, D K District Jewellers’ Association.