Gold price at all-time high, weddings may be costlier
Four years ago, it touched Rs 34,500, but this time it has crossed the previous records, says Karnataka Jewellers Association president T A Sharavana.
Published: 07th February 2019 06:22 AM | Last Updated: 07th February 2019 06:22 AM | A+A A-
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BENGALURU: The wedding season has kicked in with Magha Maasa, the auspicious Hindu month for weddings, here. But this may not bring cheer to gold buyers as the yellow metal has reached Rs 35,000 per ten grams, said to be an all-time high according to the jewellers in Karnataka.
Four years ago, it touched Rs 34,500, but this time it has crossed the previous records, says Karnataka Jewellers Association president T A Sharavana.Gold prices which hovered around Rs 3,200 to Rs 3,300 per gram in January, started going up by January end. According to Sharavana, gold has reached Rs 35,000 per ten grams and it continues to be on the rise. “The market trend shows that it is likely to touch Rs 36,000 per ten grams in the coming days,’’ he said.
Sunitha Raj, whose daughter is getting engaged next week, bought a gold ring for the groom for Rs 20,000. It hardly weighs four grams. “We used to get a chain for the same money a few years ago. Gold price is increasing. But without gold, neither weddings nor any auspicious occasions are complete,” she said.
K P Nanjundi of Lakshmi Gold Palace said with the gold rate reaching the sky, the number of prospective buyers will come down by 30-50 per cent. “When gold price increases, people tend to buy lesser weight jewellery and vice versa. Going by the international market trends, gold price has been increasing constantly for the last 15 years. It will increase further. But after some time, there will be a reverse trend and price is expected to fall. People will not stop buying gold. It’s an investment,” he said.
In Karnataka, there are 26,000 jeweller stores, of which close to 9,000 are in Bengaluru.Sharavana said there are many reasons for the gold pricehike. “The rupee value against the dollar is decreasing. The political developments in US are also favouring an increase in gold prices. At present, jewellers are paying ten per cent import tax on gold and also ten per cent GST. This tax will ultimately come on the customer. If it is reduced, gold rate can be reduced to some extent,’’he added.
