Jewellers See 30% Dip in Sales After Price Rise

Hyderabad:Jewellers have reported a 30 per cent fall in sales during the current festive season following a steep rise in the bullion price of around ₹20,000 within a year. On Wednesday, gold price crossed the all-time high of ₹80,000 per 10 gram, while silver price touched ₹1 lakh per kg.

The price rise affected the sales of outlets dealing with gold, silver, gems, diamonds, artificial stones and pearls, registering a 30 per cent decline compared to the last year.

Ashok Shermal Jain, president of Pot Market Jewellers Association, which represents over 350 gold jewellers, said that the pure gold was selling around ₹61,500 last year in this same period. It had crossed ₹80.000 due to a number of factors including geopolitical uncertainty, and the US Presidential elections.

The silver prices have appreciated by more than 30 per cent year-to-date, outpacing the gold due to a number of global factors, including high industrial usage and rising jewellery demand. Besides, the growth in gold rates also acts as a catalyst for the rally in the silver prices, which is selling at `1,00,780 per kilogram at wholesale markets in the city on Thursday.

However, experts expect gold prices to marginally fall to around `76,000 for 10 grams and silver to `90,000 per kg by the end of the current quarter after the US Presidential elections.