Gold prices rose sharply today, with standard gold adding 1.7 per cent to close at 47,669 per 10 gram in Mumbai, while silver gained as much as 6.9 per cent to close at Rs 48,120 per kg.
Jewellery stores in many smaller cities and towns in northern India have started opening up. They are keeping the buying rate for 22-carat non-hallmarked jewellery at about Rs 36,000 per 10 grams. Any wastage, which usually occurs to the extent of 20-30 per cent in old ornaments, would invite extra deduction.
Gold price in physical market went up sharply today, following an equally sharply rise in the international market due to expectations of negative interest rates in US, trade tension again emerging between US and China and very weak rupee, which is a whisker away from 76 to the dollar.
Ashok Seth, President of the East Delhi Jewellers Association and convener of the Delhi NCR Jewellers Committee, said, “As the stores are gradually opening up, we thought of having a common indicative rate for all member associations and hence issued an advisory about the rate at which all can sell jewellery, along with the rate for buying back old jewellery.”
The Delhi NCR Jewellers Committee has the support of 41 different north Indian associations.
According to the advisory, today's gold price fixed before market opening for selling hall-marked jewellery is Rs 45,590 per 10 gram for 22-carat or 916 purity jewellery. The price ogf gold only rose throught the day today. This rate is in line with Indian Bullion and Jewellers Association (IBJA)’s indicative rate for retail sale of similar ornaments by jewellers, at Rs 46,100 per 10 grams. However, North Indian jewellers have fixed gold price for buying old hall-marked jewelry at Rs 40,420 and for non-hallmarked jewellery at Rs 36,380 per 10 gram. A few decades, ago most consumers were buying un-hallmaked jewellery.
Effectively this means that when a consumer goes to sell jewellery looking at the pure gold price around Rs 48,000, he will get only Rs 36,000, or 25 per cent less in case his ornaments are not hallmarked. This will further suffer deduction of wastage from the weight of the jewellery.
Seth said that the difference in buying selling rates is a usual phenomenon and when gold price fluctuates or the pressure on selling side is likely to be higher, the difference widens. Currently jewellers prefer to sell hallmarked jewellery only and hence old non-hallmarked ornaments will fetch less.
Jewellery stores in Chandigarh, Punjab, Karnal, some parts in Delhi, and Noida have started opening up and many others in National Capital Region are awaiting Delhi government guidelines. In most places, jewellery stores have been permitted to remain open between 9am and 2pm. This is most unsuitable for luxury items like jewellery. Ashok Seth said wanted 12pm to 6pm.