Gold prices reached unprecedented highs during the wedding season. 10 grams of solid gold (24 carats) touched rupees 57,800 for the first time in the market on Friday leaving many buyers and sellers in a quandary. If GST is added, the price is only 466 rupees less than 60 thousand. Jewellery traders claim that as a result of this, the buyers who have returned to the gold market after overcoming the Covid situation, are facing immense trouble. The price of jewelry is rapidly rising beyond the reach of ordinary buyers. The tremors are increasing. Many small shops in the neighborhood are locked due to a lack of customers. All buyers and sellers have the same question, where will the price finally reach?
Samar Dey, executive president of the Save Gold Industry Committee, said, “Wedding season brings some buyers. Some of them have no choice but to shop for home weddings. But most of them have reduced their gold purchases or are trying to save some money by exchanging the jewelry at home. Some are in a hurry. They are buying jewelry in fear of price increase.” However, jewelers Vinay Singh and Tagar Poddar claim that no one is going to the market unless they are forced to do so.
Trouble for the middle class
They say that most households are forced to cut back on additional spending due to rising prices of almost every day-to-day essential. Because the income is not increasing to match it. As a result, how will such expensive gold gets sold? In the current economic climate, it is becoming difficult to preserve the tradition of giving gold as a wedding gift.
According to Vinay, the majority of buyers are now leaning towards lighter jewelry. Hence the competition among the gold shops has started as to who can make well-designed jewelry with less gold. They have already started discussions with artisans to make such light jewelry, says Mr. Samar.
According to market experts, gold is becoming more expensive as the risk of recession increases in the global market. Because demand for metal as a safe investment is increasing. On this day it became 1932 dollars per ounce. As a result, the price is rising in India as well. The demand for jewelry is going down. Entering the new year, many experts warned that the price of gold may touch 60 thousand. Concerned circles are worried it has come true in the first month of the year.
Central emphasis on loans to backward districts
The Finance Ministry has asked to emphasize the expansion of banking services in backward districts across the country. Banks have therefore been asked to ensure easy access to loans, especially in 112 developing districts, and to have at least one branch within 5 km of every village where people live.
In 2018, the 112 most backward districts were identified under the Centre’s special program. Banking Secretary Vivek Joshi asked the banking industry to come forward to provide loans to the State Level Bankers Committee and various district administrations on Friday.