The jewellery industry believes that amid the slowdown in the economy, consumer demand for the yellow metal may decrease sharply in gold prices. Gold is reaching new heights in India and global bullion markets due to uncertainty created due to Covid-19 pandemic. This is because at this time of crisis, the attractiveness of gold as a safe investment option has increased. On Friday, gold in Mumbai was at Rs 50,919 per 10 grams, while in the national capital it reached the level of Rs 51,946 per 10 grams. The global benchmark spot gold price is hovering at a near nine-year high of $ 1,900 an ounce.
Jewellery Business loses shine
All India Gems and Jewellery Household Council (AIEGJDC) chairman Anant Padmanabhan said, “The demand is already sluggish. Due to sluggishness in the economy, uncertainty about employment, social distance and the applicable lockdown due to Covid-19, only 20 to 25 per cent of the business is being done as per normal days. ”
People waiting for the prices to drop
Padmanabhan said that people are not even shopping for marriage, as there are not too many marriages at this time. People are avoiding big events. He said that people are actually waiting for the fluctuations in gold prices to stop. After that they will decide on the purchase.
Investors happy, consumer worried
World Gold Council (WGC) Managing Director (India) Somasundaram PR said that the price of gold going above Rs 50,000 is an important development. The reaction coming to this is natural. That means investors are happy, consumers are worried. He said, “Since January 2019, the price of gold has gone up by 60 percent. It has gained a lot since August, 2019. Although the dollar has not crossed its all-time high, gold is at its all-time high. “
Saurabh Gadgil, managing director and chief executive officer of Pune-headquartered jewellery brand PNG Jewellers, said that consumer demand is low due to the Covid-19 scenario. People are buying only small items of gold. However, from the investment point of view the demand is quite high. He said that at this time gold remains a safe investment option among investors.
Gold can reach 65 thousand rupees
Gadgil said that due to the Covid-19 crisis and the presidential election in America, gold will rise more in the next 12 months. He said, “We estimate that in the next 12 months, gold in the domestic market will be at the level of Rs 65,000 per 10 grams. In the international market, it will touch $ 2,500 an ounce level.”
