Gold jewellery sales plunge as bullion rates soar
The difference between gold rate in the local and the Middle Eastern market has also narrowed down to Rs25-30 as against Rs300-400 a year back. Pak traders buy physical gold from the Middle East. Gold dealers and buyers are equally perturbed over this issue. Gold dealers say that although it was the peak season of Eid and now weddings, with New Year following up, yet the markets are devoid of good customers. We are getting very few customers and they too are buying only as per needs, said a gold dealer in Saddar. Another dealer at Tariq Road said: Gone are the days of robust sales when people would buy more gold sets than their requirement. Market people say there is no alternative to gold due to deep-rooted cultural ethos. In our part of the world gold is symbolically linked with marriage. It is not a product that can be produced in cheaper quality, because for gold, rates are fixed according to karats and thus we cannot provide a cheaper solution to the customers, said Muhammad Shaukat, a gold and silver dealer at Gulf Shopping Mall. However Shaukat told The News that the demand for silver has considerably risen over this time. With the rising price of gold, the sales of silver have considerably escalated as people are buying more silver jewellery instead of the pricey metal, said he. With this increasing demand of silver the gold dealers have started focusing more on silver jewellery to address the needs of the non-affording masses. I used to keep only gold at my shop but later as the trend grew I started making silver jewellery too. It is not only cheap but more in demand due to sky rocketing prices of gold, added Shaukat. The yellow metal being one of the main components required in eastern weddings, has put most of the buyers in a difficult situation. My daughter s wedding is next month, but when I went to buy a gold set it was way out of my budget, with the cheapest ranging between Rs0.15 to Rs0.2 million. I therefore decided to give my own wedding set to her and bought her just a silver one instead, said Farah who belongs to a middle-income family. However as the concerns of the affected masses continue, market people believe that upward trend of gold may stay for some time due to the uncertain global markets.
KARACHI: Fluctuating prices of gold have upset the local markets to the extent that even at the peak of wedding season there is virtually no buying of gold jewellery. The price of gold crossed its highest mark in history by reaching Rs31,300 per tola (11.6 grams) on the 17th of this September. When the price of gold reached this level, people completely stopped buying and came in for selling, said Hanif Chand, a dealer of gold at the All Sindh Saaraf Association of Pakistan.
Due to increased rates, Pakistan is exporting instead of importing gold, he said. The yellow metal saw a sudden surge in prices at the start of this month during which the price rose about Rs2,000 per tola. This abrupt upward rush occurred due to bulk buying of gold by India from the international markets. India, which is one of the largest exporters and importers of gold, reportedly did the buying for the upcoming Diwali peak season. Gold brokers say that in the last one year gold has seen a vast increase in price in Pakistan. Last Ramazan gold stood at Rs22,500 while this Ramazan its price rose to the unimaginable Rs31,300, marking a 33 per cent increase, said Chand. This rise occurred in the local market without much change in the international bullion rates. This shows how much the Pakistani rupee has depreciated this year, he said.The difference between gold rate in the local and the Middle Eastern market has also narrowed down to Rs25-30 as against Rs300-400 a year back. Pak traders buy physical gold from the Middle East. Gold dealers and buyers are equally perturbed over this issue. Gold dealers say that although it was the peak season of Eid and now weddings, with New Year following up, yet the markets are devoid of good customers. We are getting very few customers and they too are buying only as per needs, said a gold dealer in Saddar. Another dealer at Tariq Road said: Gone are the days of robust sales when people would buy more gold sets than their requirement. Market people say there is no alternative to gold due to deep-rooted cultural ethos. In our part of the world gold is symbolically linked with marriage. It is not a product that can be produced in cheaper quality, because for gold, rates are fixed according to karats and thus we cannot provide a cheaper solution to the customers, said Muhammad Shaukat, a gold and silver dealer at Gulf Shopping Mall. However Shaukat told The News that the demand for silver has considerably risen over this time. With the rising price of gold, the sales of silver have considerably escalated as people are buying more silver jewellery instead of the pricey metal, said he. With this increasing demand of silver the gold dealers have started focusing more on silver jewellery to address the needs of the non-affording masses. I used to keep only gold at my shop but later as the trend grew I started making silver jewellery too. It is not only cheap but more in demand due to sky rocketing prices of gold, added Shaukat. The yellow metal being one of the main components required in eastern weddings, has put most of the buyers in a difficult situation. My daughter s wedding is next month, but when I went to buy a gold set it was way out of my budget, with the cheapest ranging between Rs0.15 to Rs0.2 million. I therefore decided to give my own wedding set to her and bought her just a silver one instead, said Farah who belongs to a middle-income family. However as the concerns of the affected masses continue, market people believe that upward trend of gold may stay for some time due to the uncertain global markets.
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