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Jewellers reel under gold price hike, strike
Gold jewellery Sales reduced by 25-30% in April ’12 vis-à-vis the same period last year
Binny Sharma
New Delhi
WITH AKSHAYA Trityiya — the biggest gold buying festival — falling next week, gold jewellers across the country are trying their best to woo customers in spite of sales of the yellow metal witnessing a steep fall due to a sharp increase in the price.
India is so far the world’s largest buyer of yellow metal. However, it is estimated that across the country gold jewellery sales went down by 25-30 percent this April vis-à-vis the corresponding period last year.
“We have reports that jewellers are facing a difficult time with a dip in sales by almost 30 percent in the last one month. In fact, March 2012 was the worst, as gold jewellery sales dipped by as much 55-60 percent in comparison to the corresponding period (last year). Due to rising gold prices and strike by gold jewellers, which stayed for almost three weeks, people associated with gold trade have faced huge losses in the last few months, ” said Ashok Minawala, former chairperson, All India Gems and Jewellery Trade Federation.
Rising gold prices have been a primary reason for customers not opting for jewellery purchase. “People are just apprehensive to go for any kind of gold jewellery purchase as lots of speculations related to its price is happening in the market,” he said.
“Though every year we try to lure more and more customers on this auspicious day but this year situation is different as we are reeling under the hiked gold price,” said Rajesh.
Saraf, president, Delhi Gold Federation and general secretary, Karol Bagh Jewellers Association.
As much as 25 percent drop in gold jewellery sales in Delhi is seen this April in comparison to the corresponding period last year, he informed.
While last year gold price was hovering around Rs 21,000 in April, this year it is about to touch Rs 29,000, he added. “Almost 30-35 percent price rise in gold is difficult to digest. We are keeping our fingers crossed for this Akshaya Trityiya,” he said.
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