Nizamabad: Rising prices of yellow metal push goldsmiths into the quandary
With the advent of Magha Masam, the season of weddings is here. And how can there be weddings sans the glittering gold.
Nizamabad: With the advent of Magha Masam, the season of weddings is here. And how can there be weddings sans the glittering gold. However, with the prices of the yellow metal hitting all time high, the number of consumers has dwindled drastically and this has impacted the jewellery business.
The increasing prices of the gold can be attributed to economic downturn in the country besides uncertainty in the global markets that arised due to tensions between The United States of America and the Iran in January.
Earlier, the gold price that were in rupees hundreds per 10 gm a decade ago has reached thousands of rupees, thanks to the continuous uncertainty in the global markets. The price of the precious metals including gold and silver are on the rise for the last many years. Though the gold prices dropped in the last three months, the drop was meagre. Under the NDA-2 regime, the price of gold has increased due to fall of the rupee value against the US dollar. Similarly, after a bitter encounter with the US, the Iran has increased the prices of crude oil and gold products. With this, the price of 10 gm of gold (24 carats) on January 5 touched Rs 41,390. On January, the priced was at Rs 42,120 with an increase by Rs 730 in a span of just two days.
Even the silver has been treading the gold path. Six months ago, 10 gm of silver was priced at Rs 385. However, with steady growth since September last, the price of silver touched Rs 512 per 10 gm in January.
With the Gross Domestic Product declining after the general elections, investment diverted from the industrial services manufacturing sector to gold, the price of gold is on the rise. In September, 10 gm of gold was priced at Rs 38,110 and a kg of silver was priced at Rs 40,600. In October, 10 gm of gold was priced at Rs 39,655 and kg silver at Rs 42,650. In November, 10 gm of gold was priced at Rs 40,685 and kg silver at Rs 46,690. In December, 10 gm of gold was priced at Rs 41,097 and kg silver at Rs 49,075.
With the tension between the US and the Iran escalating in January, the price of 10 gm of yellow metal rose to Rs 42,120 and kg silver to 51,254. After the end of uncertainty between Iran and the US, there has been a nominal decrease in the price of gold with now the 10 gm of metal costing Rs 41,890 and silver at Rs 48,480 per kilogram.
With the rising prices of precious metals, the areas of Kumargalli and Gunjillu that have a large number of jewellery making stores pose a deserted look. There are over a hundred goldsmiths that work in the area. The bazaar that used to be crowded with customers has now become a deserted place with customers not buying the yellow metal even at the time of weddings. The traders in the area say anyone who goes to the store to buy something, hesitates and refrains from buying after getting to know the prices. Due to rising prices, there is no demand.
"We are unable to pay the rent for the shops. Workers are struggling to make ends meet due to increasing prices and nosediving incomes," said C Dvidas, secretary Nizamabad Jewellery Makers Association, adding that they might have to quit the business if the gold prices continue to grow the irrepressible way.