Double jolt to jewellers as gold prices soar amid pandemic blues
City-based jewellers rued that while the rising prices have attracted a few investors for pure gold (24 carat), there have been no takers for designed jewellery at their stores.
Dealing a major blow to the jewellery business amid a pandemic-induced slowdown, gold prices crossed ₹52,000/10 grams on Friday, while silver was valued at ₹61,000/kg.
City-based jewellers rued that while the rising prices have attracted a few investors for pure gold (24 carat), there have been no takers for designed jewellery at their stores. They said the Covid-19 pandemic had badly hit the business as no lavish weddings were taking place at the moment, and that uncertainty loomed over trade prospects during the festival season this year.
Ludhiana jewellers’ association president Anand Sikri said, “There are no customers and the jewellers are sitting idle, waiting for purchases to happen. Till now, people were restricted by the fear of infection, and now the rising prices have added to the problem. The few showing up buy only pure gold for investment purposes, but the response is tepid due to low purchasing capacity and high rates.”
As per the jewellers, no orders for silver rakhis were placed this year, as the lower and middle class families were already struggling to make ends meet amid the financial crisis. Gold and silver were priced at around ₹40,000/10g and ₹46,000/kg respectively before the lockdown. However, the skyrocketing rates are pushing buyers away from the precious metal.
A jeweller from Chaar Khamba road in Model Town, Karan Arneja, said, “The business is at an all time low as people, who are hugely impacted by the economic slump caused by Covid-19, can’t afford gold or silver jewellery at the current rates. Jewellers are now working to reduce their fixed expenses to deal with the business slowdown.”
“Residents here are instead selling their gold jewellery to manage their finances in these tough times,” said Arneja.
Experts believe that gold prices are likely to increase further by Diwali this year.
Tribhuvan Thapar, a jeweller from Sarafa Bazar said, “The government should step in and provide some relief to the sector as the business is suffering like never before. The future doesn’t look promising either as gold rates are expected to touch ₹60,000 by Dilwai this year.”
Echoing Thapar’s views, silver trader Puneet Kapoor stated that in the demand in the market, the future of their businesses seemed irresolute.