Gold Sales Reduce by 80% after Nov 8
India being the 2nd largest country in gold consumption has been severely affected after November 8, 2016. The ban on Rs. 1000 and Rs. 500 notes has created a shortage of liquidity in the Indian market. The jewelry sector faced a drastic slowdown after the government’s demonetization move.
“It was only on Nov 8 from 8 p.m. when people wanted to buy bulk quantity of gold, so that they could invest all their black money in gold. The jewelry showrooms were open till 12 midnight. After that day, everything went completely down, there is no sales as people still do not have enough money to spend in hand”, mentions Raj Tulsani, co-founder Radheshayaam Jwellers. Gold hit a three year high overnight of Rs. 32000. Experts trust people will accumulate their black money in gold. Traders are waiting for the dust to settle after which regular rates will be quoted. Samir Singh, Director, Manu Jewellers said, “It is a brilliant move. We are looking at a revolutionary and positive change in the business markets. The demonetization definitely has caused a drop in the business and while it is a short term pain, in the long run we visualise the move to create a level playing field for everyone. Therefore, streamlining the businesses as we move forward. Sales are down since 9th November and are likely to not have a huge growth anytime soon; until the public is comfortable with this change. There has not been any drastic increase in gold rates as such.”
Although there is huge inconvenience in the short run and jewellers will also bear the brunt of that, it is imperative that we forget our own selfish needs and look at this initiative which will prove much more beneficial in the long term.
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