Gold sales heat up as Teej fever spreads
KATHMANDU, AUG 20 -
Gold sales have started to climb in the Kathmandu valley with increased demand from Hindu women to make jewellery for the Teej festival. Jewellery stores are swarming with customers as festival shopping picks up pace. Bullion traders said business had swelled tremendously in the past few days.
Meanwhile, jewellery traders have launched various promotional campaigns to lure buyers. Gitanjali Jewels has unveiled its Grand Teej Sale scheme which offers discounts of up to 25 percent on the making charge for diamond and gold jewellery. Customers will also get a gift of a gold tilhari on purchase of jewellery of more than Rs 150,000.
Similarly, Shree Riddi Siddhi Jewellers offers a 30 percent discount on the making charges for gold and diamond jewellery.
According to the Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida), demand has jumped 25 percent compared to normal times. “Gold sales have soared from 20 kg daily to 35 kg,” said Mani Ratna Shakya, president of Fenegosida. “Traders have been trying to meet their sales targets by preparing newly designed ornaments.”
Shakya said that the market could face a shortage of gold in the coming days due to a cap imposed by Nepal Rastra Bank. The central bank had reduced the gold import quota from 20 kg to 15 kg last month. The limit on gold imports was imposed in a bid to reduce the swelling trade deficit that has affected the country’s balance of payments.
“We are receiving 20-30 orders for jewellery daily against 15-20 in normal times,” said Rajesh Bogati, sales and marketing manager of Shalimar Jewellers. They expect a 15 percent rise in sales this year. “Sales have been slow for the past two-three months, but with the approach of Teej, customers have been coming to buy new jewellery, so we are upbeat about sales,” he said. Traders also expect higher sales this year as prices have been falling. “Today’s prices are lower compared to last year’s Teej season,” said Tej Ratna Shakya, proprietor of Tejwin Jewellers located on New Road. “It could boost sales as Nepali women are price-conscious.” During the Teej festival last year, gold cost between Rs 58,000 to Rs 60,000 per tola. On Tuesday, the yellow metal traded at Rs 54,200 per tola in the domestic market. Prices have been falling in recent days as per international market trends. Gold has taken a downhill trend since August 8 after hitting a high of Rs 55,300 per tola.
Source: The Kathmandu Post
