Noida: This is the first Akshay Tritiya when jewellers of Noida are expecting more people to sell their gold rather than buying them.
In a video conferencing held among traders of Noida on Thursday, jewellers said that only a handful of them have sold some gold coins so far. Akshay Tritiya falls on April 26. The 24-carat gold rate closed at Rs 47,307 for 10gms on Thursday.
“I received just two orders through my shop’s website for gold coins. This is nothing, so we have no prediction so far about the market, but yes, we sense that with salary cuts in place and already liquidity crunch in the market, people will actually come out and sell their gold than buying. And most jewellers would not even have the liquidity to purchase that,” said Sudhir Singhal, a Noida-based jeweller.
Noida has around 200 jewellery shops, which includes branded and smaller stores in local markets.
The community, for the first time, has no business at this time as Covid-19 has pushed consumer patterns to essentials.
“Only those who are associated with the essential businesses are making any money, grocery for instance. Even as gold prices are high in the market, there is no transaction on ground and we are sensing that a lot of people would actually be liquidating their gold at this time since price is high, but because the jewellers have no customers, it would also be hard to sell jewellery for liquidity,” said Sushil Kumar Jain, Convenor of Confederation of All India Traders (CAIT)-NCR.
“Even if people come to us with jewellery to sell, we will not have the liquidity to purchase because no one is buying our stock. Till our old stock moves, physical purchase and sale of gold is a distant probability for now,” said another Noida-based jeweller.
“People may be investing in gold on papers through gold bonds, but the real situation on ground is far from great. People have no money to spend and will not like to exhaust their liquidity in this market when the economy is slowing down,” Jain added.
In a video conferencing held among traders of Noida on Thursday, jewellers said that only a handful of them have sold some gold coins so far. Akshay Tritiya falls on April 26. The 24-carat gold rate closed at Rs 47,307 for 10gms on Thursday.
“I received just two orders through my shop’s website for gold coins. This is nothing, so we have no prediction so far about the market, but yes, we sense that with salary cuts in place and already liquidity crunch in the market, people will actually come out and sell their gold than buying. And most jewellers would not even have the liquidity to purchase that,” said Sudhir Singhal, a Noida-based jeweller.
Noida has around 200 jewellery shops, which includes branded and smaller stores in local markets.
The community, for the first time, has no business at this time as Covid-19 has pushed consumer patterns to essentials.
“Only those who are associated with the essential businesses are making any money, grocery for instance. Even as gold prices are high in the market, there is no transaction on ground and we are sensing that a lot of people would actually be liquidating their gold at this time since price is high, but because the jewellers have no customers, it would also be hard to sell jewellery for liquidity,” said Sushil Kumar Jain, Convenor of Confederation of All India Traders (CAIT)-NCR.
“Even if people come to us with jewellery to sell, we will not have the liquidity to purchase because no one is buying our stock. Till our old stock moves, physical purchase and sale of gold is a distant probability for now,” said another Noida-based jeweller.
“People may be investing in gold on papers through gold bonds, but the real situation on ground is far from great. People have no money to spend and will not like to exhaust their liquidity in this market when the economy is slowing down,” Jain added.
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