Gold prices go berserk Hit sellers, buyers alike
Srinagar, Nov 6: With gold prices surging new highs every day for past some days, the jewellers here said they had been witnessing decline in their business.
Expressing concern over the rise in the prices the goldsmiths said should the trend go like this, it would adversely affect the purchasing power of common man and hence hit their business.
“Just in 48 hours the prices per ten gram gold have increased by Rs 800. This is a huge hike that points to the volatility in the market,” they said, adding that in such conditions a customer feels jittery about purchasing the gold.
The traders said the fluctuating prices of the yellow metal had caused a great distrust to both the sellers and the purchasers in the Valley. “The customers come to us to confirm the rates today. Next day they find different rates. This is utter chaos, where neither we know when the rates changes nor the customers knows when the rates would settle,” said Fayaz Ahmad Shah of Shah Jewellers Hari Singh High Street. He said such a situation had the potential to spoil the seller-buyer relation.
“The every minute fluctuations in the prices have completely reduced our turnover. I think if it will continue like this then we will see more downward trend in this business. However if there comes a stability in prices the customers will be able to plan accordingly .Otherwise these changing prices have put them in a fix,” he added.
The traders said that they are expecting further increase in gold prices. “Certain indications show that the prices may cross even Rs 18000 per 10 grams,” said Abdul Rashid Bhat, chairman, Gold Dealers and Manufacturers Association.
The traders said they were also not able to take advance orders from the customers and presently if they do so they ask for a big amount in advance from the customer.
“Initially we used to ask for a marginal amount in advance but now if the customer is ordering for a jewellery worth Rs 5 lakh he/she needs to pay at least Rs 3 lakh in advance. This way the customer is suffering a lot,” they said.
The customers too are concerned with the rising rates of the gold. “I was planning to purchase some gold jewellery for my daughter but the oft-changing rates have made me concerned. I have shelved the plan to purchase,” said Imtiyaz Ahmad of Safakadal.
“The increased rates is either forcing the customers to buy less gold or is making them to pay additional amount with every passing day,” he added.
Lastupdate on : Fri, 6 Nov 2009 21:30:00 Makkah time
Lastupdate on : Fri, 6 Nov 2009 18:30:00 GMT
Lastupdate on : Sat, 7 Nov 2009 00:00:00 IST
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Srinagar, Nov 6: With gold prices surging new highs every day for past some days, the jewellers here said they had been witnessing decline in their business. Expressing concern over the rise in the prices More