Surging gold price may hit business

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Ranchi: A spurt in gold price may dampen the mood this Akshaya Tritiya and may affect business of small jewellers in the city. Gold prices have gone up from Rs. 28,000 per 10 gm to Rs. 29,500 per 10 gm in the last one week.
Prem Kumar of Shri Shiv and Sons Jewellers said, “Last year, we got around 70-80 bookings from customers, two days before Akshaya Tritiya, but this time we have merely got around 10-15 bookings because of the increase in price of gold.”
Another reason behind low booking this year is that there are no auspicious dates for marriage in the coming days. “Last year Akshaya Tritiya was during the Lagan (marriage) season so more people where interested in buying jewellery but this time the lagan season is already over,
On Saturday, gold snapped its three-day fall and firmed up by Rs 40 to Rs 29,940 per 10 gm at the domestic bullion market on renewed local buying support amid a firming trend in overseas. Silver, however, succumbed to fresh bouts of selling from speculative traders. Standard gold (99.5 purity) firmed up by Rs 40 to end at Rs 29,940 per 10 gm from Thursday’s close of Rs 29,900.
Keeping in view the high rates of growth, many jewellers have come up with light weight jewellery. Rohit Kumar of Gehna Ghar said, “As it is considered to buy gold on Akshaya Tritiya people would definitely be buying gold but the high rate of gold may be a problem for many people. This year we have come up with very light gold coins and jewellery below 10 gms of weight which people can easily afford.”
However, the price rise does not seem to affect the branded showrooms. Deepak Kedia of tanishq Jewellers said, “People who believe in Akshaya Tritiya will definitely come. High rates will not affect them. We have come up with a new range of both gold and diamond jewellery. The diamond jewellery range, Nilopher, costs between Rs.25,000 to Rs. 2 lakh while the gold range, Shagun begins from Rs. 6,000.” This apart many jewellers are offering various discounts on making charges of gold and diamond jewellery to lure customers.
Meanwhile, there are some jewellers who are hoping to make up for the loss they incurred during the month long strike in March. Chairperson of Sona Chandi Vyavasayi Samiti of Ranchi, Ravi Kumar said, “We went on a strike for around one month to protest against the 1% excise duty on gold and diamond jewelleries by centre in the month of May. During that time we had to face a huge loss as the shops remained closed. We are hoping to make some profit during this Akshaya Tritiya to make up for that loss.”