Dashain fails to bring cheers to bullion traders
KATHMANDU:
All hopes of the bullion traders are set for the festival of Tihar to salvage them from the wasted Dashain brought on about by the roller-coasting precious yellow metal prices.
“Despite Dashain the transaction has been estimated to come down by 80 per cent due to price volatility of gold in international market,” said president of Nepal Gold and Silver Dealers Association (Negosida) Tej Ratna Shakya.
“If the price stabilises around Rs 50,000 to 51,000 per tola (11.664 gram) the market can expect to get revived during Tihar,” he said, adding that the traders can not expect the customers to be ready to purchase gold ornaments, if the volatility continue.
On September 6, the domestic market saw gold price reaching to the high of Rs 54,200 for tola but it dropped to as low as Rs 49,800 on September 26. The massive selling in the international commodity market pulled down the prices by a full 11 per cent to $1,634 an ounce by the end of September, compared to $1,826 an ounce by the end of August.
However, the sales of silver ornaments and utensils on days preceding Tihar are expected to compensate for the lull during Dashain. “During Tihar the demand for silver utensils jumps about 300 per cent since last few years,” informed Shakya.
“If Tihar fails to bring expected business then it will not take long before few shops will close down,” pointed out Shakya.
Though the festive season is supposed to be the busiest season for the gold and silver traders, this is third consecutive Dashain that failed to bring expected turnover in the bullion market.
Last Dashain domestic gold market was haunted by short supply of gold and silver as government had banned the import. The traders depended on the auction conducted by the central bank that was considered less than the actual market demand. “Last year also the gold trade observed 25 per cent less business compared to that of preceding year,” according to Shakya.
The year preceding last was also not much cheerful for the jewellers as the whole country was weighed down by the cash crunch. Since banks and financial institutions were only able to allow the withdrawal of cash up to limited amount, the purchases of gold were hampered, he added.
The precious yellow metal prices are expected to be on bull due to approaching Diwali in India. Gold prices expected to Indian Currency 29,000 per 10 gram by Diwali, according to the Bombay Bullion Association.
India is a leading consumer of gold that witnesses exponential growth in demand for gold during Diwali even affecting the global gold price.
Source: THT
All hopes of the bullion traders are set for the festival of Tihar to salvage them from the wasted Dashain brought on about by the roller-coasting precious yellow metal prices.
“Despite Dashain the transaction has been estimated to come down by 80 per cent due to price volatility of gold in international market,” said president of Nepal Gold and Silver Dealers Association (Negosida) Tej Ratna Shakya.
“If the price stabilises around Rs 50,000 to 51,000 per tola (11.664 gram) the market can expect to get revived during Tihar,” he said, adding that the traders can not expect the customers to be ready to purchase gold ornaments, if the volatility continue.
On September 6, the domestic market saw gold price reaching to the high of Rs 54,200 for tola but it dropped to as low as Rs 49,800 on September 26. The massive selling in the international commodity market pulled down the prices by a full 11 per cent to $1,634 an ounce by the end of September, compared to $1,826 an ounce by the end of August.
However, the sales of silver ornaments and utensils on days preceding Tihar are expected to compensate for the lull during Dashain. “During Tihar the demand for silver utensils jumps about 300 per cent since last few years,” informed Shakya.
“If Tihar fails to bring expected business then it will not take long before few shops will close down,” pointed out Shakya.
Though the festive season is supposed to be the busiest season for the gold and silver traders, this is third consecutive Dashain that failed to bring expected turnover in the bullion market.
Last Dashain domestic gold market was haunted by short supply of gold and silver as government had banned the import. The traders depended on the auction conducted by the central bank that was considered less than the actual market demand. “Last year also the gold trade observed 25 per cent less business compared to that of preceding year,” according to Shakya.
The year preceding last was also not much cheerful for the jewellers as the whole country was weighed down by the cash crunch. Since banks and financial institutions were only able to allow the withdrawal of cash up to limited amount, the purchases of gold were hampered, he added.
The precious yellow metal prices are expected to be on bull due to approaching Diwali in India. Gold prices expected to Indian Currency 29,000 per 10 gram by Diwali, according to the Bombay Bullion Association.
India is a leading consumer of gold that witnesses exponential growth in demand for gold during Diwali even affecting the global gold price.
Source: THT
