Gold lovers shocked; business falls by 50%

• Gold prices rise to record high

Mangaluru: Since the last month, gold lovers are receiving a shock over a shock and the reason behind the shock is the daily increase in the gold prices which is reaching record highs. The crossing of price over Rs 3,000 for a gram of gold has caused sleepless nights to gold lovers. Due to the lack of 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 do 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 3^rd. Later, even if there was a marginal fall in the prices, 1 gm of gold stood at Rs 3,030 on Jan 10^th.  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 for increase in import?

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

Article by Dhanya Balakaje translated into English by Aaron Dmello