Mobiles, classy cars and expensive clothes are believed to be one of the reasons that have made a dent on the gold market. Even when the festivities are in full swing, those dealing in the expensive metal say that there is little joy for them.
Every year people star t buying gold when Diwali is approaching. Now the market has pinned hopes on ‘Dhanteras’ which is on October 21, as it might bring some relief to the gold traders in the city. Expensive mobiles, cars and clothes seem to have taken the sheen from gold away, say gold traders.
The cost of 10gm pure gold on Saturday was around Rs 27,000 while it was nearly Rs 27,400 last week. The price was Rs 26,700 ten days ago.
Traders say that even when the price of gold is low, no one is turning up to buy gold. The price of 10gm of 22 carat gold that is used in ornaments was as low as Rs 25,500.
A large number of unauthorised dealers in gold have also caused a severe dent on the market, who had been selling impure gold on some discount. This has also caused distrust among the buyers, who feel that it was better to buy gadgets and other expensive items rather than “impure gold”.
Sarjeewan Dhir, president of the Swarnkar Sangh Punjab, said even when the cost of gold was low, there were no buyers that highlighted the purchasing trends of the people in the EARLIER, IT WAS GOLD THAT WAS CONSIDERED TO BE THE BEST GIFT. BUT THESE DAYS, PEOPLE WANT EXPENSIVE MOBILE AND CARS FOR THEIR LOVED ONES. SARJEEWAN DHIR, Punjab Swarnkar Sangh president city. “Earlier, it was gold that was considered to be the best gift. But, these days people want expensive mobiles and cars for their loved ones,” Dhir said.
He said some of the unauthorised dealers in gold have also brought a bad name for the genuine traders who were now suffering. Dhir also brought to the light the encroachments that have been made at Chaura Bazaar disrupting the way for vehicles, who wished to visit Sarafa Bazaar that was once a bustling market for those interested in gold.
Most of the major industries, including cycle, hosiery, auto parts among others that are based in Ludhiana are also facing a crunch that has shown impact on the gold market. Gold traders say that after the festival of Rakshabandhan, the trade should have increased, but that did not happen.
Anand Sikri, president of the Ludhiana Jewellers Association, said one of the major reasons that gold business was not witnessing a boost was due to the fact that local industry was at decline. “Lack of boom in local industry is also a cause of worry for gold traders, who cannot witness a boom unless local industry comes out of slump,” Sikri said.
Meanwhile, city gold traders are all prepared for Diwali and hope that the festival could bring some respite for them.