The rise in gold prices during peak trading season has hurt both traders and consumers. Jewelers said they were passing through unpredictable situation in the market this festive season.[break]
“The rapid rise in gold price has heavily affected festive sales this year as compared to the past year,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealer´s Association (Negosida). Shakya further added that daily demand for gold has dropped to around 10 kg a day, down from around 30 kg a day of the past year.
Gold was selling for Rs 36,500 per tola (11.664 grams) during Teej last year. But the price has jumped by almost Rs 15,000 per tola this year, causing daily gold transaction to drop by more than 75 percent.
Ravi Shrestha, owner of Asri Jewelers told Republica, that he experienced drop in transaction by almost 50 percent this year. “Pre-Teej sale was also very low. The attraction for diamond jewelries, however, is on the rise,” he added.
Rise in the price of yellow metal on the other hand has caused the demand for gold plated ornaments to grow by 50 percent this festival season as compared to 30 percent of the past year. Traders of gold plated ornaments say they are enjoying brisk business as the yellow metal is setting new highs.
However, the trend of refining old jewelries, which used to pick up when gold price increases, has fallen this year. “The cost of recycling old jewelries has also increased due to rise in gold price,” Shakya told Republica.
Amid drop in transaction, traders are trying to attract customers by announcing up to 30 percent discount on working charge on gold ornaments and 15 percent discount on diamond products.
With no end in sight to market uncertainties, traders expect transaction slowdown to continue even during Dashain and Tihar.
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