Bhubaneswar, October 23 (LocalWire): With the price of gold continuing to maintain its upward trend, an air of pessimism has gripped the gold traders in the capital city here.
Traders usually expect the sale of gold and jewelry to pick up during Dhanteras and Diwali, but the prohibitively high price is expected to deter the middle class and lower class from buying the precious yellow metal.
Experts point out that the prices have skyrocketed to Rs 40,000, including GST, per ten grams of the yellow metal, which is at least Rs 12,000 more than the price during the festival season in 2018.
“We are targeting affluent sections with a lucrative discount on making charges of ornaments. However, regardless of the buying spree by rich clients, there will be a sizeable dip in sales,” a gold trader stated.
“We had a business of Rs 3.5 crore during Dhantaras and Diwali last year, but the subdued trade trend this year indicates that we may struggle to even reach the Rs one crore sales figure this year,” another trader stated on condition of anonymity.
“We have a collection of exclusive design in three showrooms and also giving a discount on making charges. Despite the dull market trend, we are hopeful of achieving the target,” Lalchand Jewelers chief financial officer Lalchand Kishan Lal Gupta said.
“Gold price hike has impacted the market. We expect moderate sale in the coming festive season,” Satyam Jewelers proprietor Anup Kumar Dey stated.
Wary of the low uptake of gold during this festival season, traders are hoping that the marriage season beginning mid-December will bring some good news in sales.