Gold rates reach high of this year
Srinagar, May 7: Yet another hike in the gold prices today pushing the yellow mettle to this year high has come as a major concern for the customers, even as the goldsmiths fear it could have negative effect on their sales.
According to the customers the fluctuating and rising prices of the mettle had become a big concern. “Purchasing gold has become quite impossible for a common man,” said Nazir Ahmad of Safakadal.
Ahmad said in view of the marriage season coming up soon in the Valley, the rising prices had caused more concerns among the people.
However, the traders too are not happy with the rising prices. “The rates are continuously going up since the past one week. Today there was a more than Rs 40/gram hike in the prices,” goldsmiths told Greater Kashmir.
“Whenever the rates shoot up we witness thirty to forty per cent decrease in our sales,” said Parshotam Lal,
President All Kashmir Gold Dealers Association.
“In this situation customers prefer to wait for the rates to come down that affects our business,” he added.
Nisar Ahmad of Tanishq Jewellers at Ali Jan Shopping Complex here said, “The rates are constantly rising since April 28. On April 28 we sold gold at Rs 1631 per gram. On April 29 the rate was Rs 1649 per gram, on May 1st it was Rs 1654 per gram, May
4th witnessed at Rs 1658 per gram. On May 5th the rate was Rs 1672 per gram and on May 7th it touched the highest at Rs 1711 per gram.”
The traders maintained that because of the constant increase in the rates of the gold its purchase has become out of bounds for the common masses. “Gold jewellery has almost become out of the reach for a common man. Most of the customers who buy gold from us presently are only those who belong to elite class and have money available with them,’ said Muhammad Ashraf Baba of Royal Jewellers Hari Singh High Street.
“The increasing rates are certainly affecting our business but ultimately it is the customer who is suffering more. The increased rate is either forcing him to buy less gold or is making him to pay additional amount with every passing day,” he added.
Some of the traders however said that they generally notice reverse trend when rates increase. “We witness heavy sales when rates go up. May be because people think the prices may further go up and it is better to purchase,” said Nisar.
Most of the traders however maintained that the increasing rates of gold is causing downward trend in their business. “Only those who have money available with them make the hasty purchase when rates are up,” said Muhammad Ashraf Baba.
The traders predict further increase in the rates of the yellow metal in the coming days and said that there are very less chances for it to go down. “As the trend goes we are expecting the rates to further go up in the coming days and there is no chance of it to go down,” they said.
Lastupdate on : Fri, 7 May 2010 21:30:00 Makkah time
Lastupdate on : Fri, 7 May 2010 18:30:00 GMT
Lastupdate on : Sat, 8 May 2010 00:00:00 IST
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