Gold fails to glitter this wedding season
KATHMANDU, NOV 27 -
The wedding season is in full swing, but jewellers have hardly anything to cheer about. Traders say the demand has not picked up way that they expected and a gloomy scene is witnessed in every jewellery shop in the Capital.
According to Mani Ratna Shakya, chairman of the Federation of Nepal Gold and Silver Dealers Association, the demand has declined by 25 percent compared to last year’s wedding season.
“If we compare the sales with the same month last year, the situation depressing,” he said, adding the demand had escalated to up to 40 kg a day last year. “But we are hopeful the demand will pick up in the near future.”
Traders attributed the fall in the demand the fluctuation in gold price and rising inflation. “Though sales have increased compared to normal days, they are very slow if we compare with the wedding season last year,” said Bikash Jodhani, director at Jay Mata Di Gold Palace at Bishal Bazaar. He said people are also purchasing gold in lesser quantities due to a significant rise the price. The precious yellow metal traded at Rs 53,800 per tola on Tuesday.
RameshTuladhar, manager at New Shreenath Jewellery, New Road, also echoed Jodhani. He said the market has improved compared to normal days, but it has not picked up the way it should have during the wedding season.
The higher prices have also prompted people to recycle their old jewellery—another reason for the slump. Many shops in the Capital said most of their customers were coming for recycling their old products, rather than buying new ones. “As we provide recycling facilities to our regular customers, many come to us for the very purpose,” said Jodhani.
According to FENEGOSIDA, the demand for gold usually remains at 40 kg per day during the period between mid-Nov to mid-Dec, but the demand this year has come down to 30 kg. Even the central bank has raised the gold import quota from 15 kg a day to 20 kg, bearing in mind the possible surge in demand during the wedding season.
Source: The Kathmandu Post
