Election code casts shadow on gold jewellery business

Hyderabad: Dhanteras is just around the corner; there has been a slight drop in the gold price from Rs. 63,500 per 10 grams (24 carat) since last month. The rate has fallen to Rs. 61,200, but the election code has affected the business in the city.

The hustle and bustle which used to be witnessed during the festive season is missing this year. The lanes of jewellery shops at Secunderabad, Begum Bazar and Basheerabad wear a deserted look.

According to the Telangana Gold and Silver Jewellery Association, since the poll code came into force, traders are facing severe restrictions on carrying cash in large denominations. The deployment of surveillance squads in each lane has led to hardships to traders and also customers.

As per recent data after reaching an all-time high of Rs 63,500 on October 28, the rate has fallen to Rs. 61,200. The price of 10 grams 22-carat gold has dropped from Rs. 57,410 on October 28 to Rs, 56,250.

Prakash Patil, vice-president, National Gold, Silver Refiners and Jewellers’ Association, said, “there has been a slight decrease in the gold price, but our sales are low due to the election code. Hardly people are visiting our shops , as the police are seizing gold valued above Rs 50,000. Also, manufacturers are unable to supply jewellery to retailers, as any cash transaction beyond Rs 50,000 could be subjected to scrutiny.”

“The model code of conduct has adversely impacted our business; we have not been benefited from the decline in gold prices. Customers fear to carry cash to purchase gold, as amounts beyond Rs 50,000 could be subjected to checking’.

Said Ashok Jain,president, Pot Market Jewellery Association, every year during October, November and December there used to be hustle and bustle of customers, but this year only a few customers are visiting our shop. Wedding season is on the anvil, but sales are very low. During Diwali we used to have magnificent sale, but this year market is very dull.

Observed Amarnath Ghosh, a goldsmith,“ most jewellery shops get work done from artisans of the Old City, as we get the yellow metal from shop and work on it, but due to the election code we are facing hardship in carrying gold. There is a risk of seizure; many of our artisans face problems while carrying gold, because of fear of being taken into custody.”