Local market facing acute shortage of gold

KATHMANDU, OCT 10 -

Domestic market has faced acute shortage of gold with the demand for the metal growing amid festive season. With the limited supply of 15 kg a day in market, bullion traders are found thronging in wholesale shops to buy gold for retail sales.

“I hardly managed to get 35 gm after waiting in queue for two hours,” said Purna Shakya, owner of Guheshwori Ornament at Pyukha, who had reached Laxmi Jyoti Traders, a wholesale shop at Makhan to buy gold , on Tuesday. He said he had been receiving demand for 20 tola (233 gm) daily but there was not gold in market. Shakya is one among scores of traders facing shortage of gold to run their regular business. On Tuesday, 49 traders including Shakya had reached the Laxmi Jyoti Traders to buy gold , only to return with 35 gm each.

“This is the sign of acute shortage of gold in the market,” said Nirmal Jyoti Tuladhar, owner of Laxmi Jyoti Trader. He said that they had bought 2 kg of gold from a commercial bank and sold all of that in a single day.

The local market needs at least 30 kg a day, according to the bullion traders. However, as per the government provision, market is getting only 15 kg per day through limited commercial banks. Because of the current shortage of the gold , many wholesalers and retail shops have started to charge an additional Rs 1,000 per 10 gm over the daily rate fixed by the Nepal Gold and Silver Dealers Association (Negosida).

“As soon as traders get to know about the wholesaler getting the gold , retail traders gather there,” said Manik Ratna Shakya, general secretary of Negosida Manik Ratna Shakya. He added that the yellow metal had been traded at higher rate, with traders taking advantage of shortage and increasing demand.

Earlier, smuggled gold used to contribute to ease demand of local market. A source said reduction in gold smuggling after news reports and nabbing of foreign currency from a Dubai-bound flight might have diverted smugglers from this business for some time, resulting in shortage.

Source: The Kathmandu Post