Gold's Soaring Prices Worry Indian Jewelers

Source:

"The disappointment looms large particularly in the context of the ensuing festival season."

Jewelers in India's southern state of Kerala are worried lot now. With gold prices soaring across the country, bullion merchants, jewelers and even customers are concerned about the business they will be able to do this festival season.

The disappointment looms large particularly in the context of the ensuing festival season. In the past, people used to buy gold well before the festivities; but, with gold now priced at Rs16,000 per 10 gm, buying it was becoming difficult.

Normally, the demand for gold rises between August and October in anticipation of the festivals of Dussera, Deepavali and Dhanteras, followed by Christmas and New Year.

Kerala has one of the highest consumptions of gold and silver ornaments in the country, but the global upsurge in the gold prices has adversely affected the business.

Traditionally, gold had been the most ideal mode of investment among the people of Kerala and also as jewelry. However, of late, particularly in the context of global trends of rising prices, to a great extent, business has been severely hit because the purchasing power of the public has slid down.

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