Despite low rate, gold sales fail to gather steam in Ludhiana
Times of India reported that gold prices have hit the lowest in last three years and settled at INR 25,590 per gram for 24 karat on Wednesday. In 2013, price was INR 35,074. Still, Ludhianvis haven't really come out to buy gold, a worrying trend for jewellers.
Mr Anand Sikri, president of Ludhiana Jewellers Association, said, "Even as gold rates have fallen internationally, there has not been much rise in the sale of gold jewellery. There is recession in the market, which may be mainly attributed to general lack of trust on gold in the market. People are expecting prices to fall further and will invest when the prices go down further. The fall could be attributed to recession in steel, hosiery and cycle parts industries, which form backbone of money inflow in the city."
Mr Maninder Singh, owner of a jewellery shop in Model Town area, said, "Generally, more and more people start buying gold jewellery when gold prices go down, but in this case, the situation is contrary to what was expected. Sales have fallen hugely. There is speculation in the market that price of gold would fall further and reach INR 20,000 per 10gm, which would be disastrous for us and investors who bought gold when it was at a high price. Some of us even have gold reserves, bought when gold was around INR 30,000."
Jewellers are now pinning hopes on the festival season.
Source : Times of India