Gold traders pin hopes on hosiery industry's growth to drive sales
With the gold business in Ludhiana directly linked to other industries, gold traders are hopeful that expected profits in hosiery industry this year would also boost sale of gold in the coming months. The hosiery industry has already received encouraging manufacturing orders from across the country recently.punjab Updated: Jun 17, 2015 19:32 IST
With the gold business in Ludhiana directly linked to other industries, gold traders are hopeful that expected profits in hosiery industry this year would also boost sale of gold in the coming months. The hosiery industry has already received encouraging manufacturing orders from across the country recently.
Gold market, which is at present witnessing a lull, is expected to get a boost during October when the hosiery industry would start receiving its payments after delivering the manufactured goods to different dealers.
While the gold traders are expecting profits, the hosiery industry has already made it clear that the year would be better than the past years as encouraging bookings for goods have been received during the recently held buyer-and-seller meet organised by the industry.
Wedding season in November and December this year is also expected to provide a fillip to the gold traders of the city. There are more than 200 jewellers in Ludhiana who depend directly or indirectly on the profits of other industries.
Bicycle, hosiery, auto parts, among other industries, are based in Ludhiana that is also a source of income for other trades. The profits earned by the industrialists are mostly invested in real estate as well as gold. While the rest of the industries were facing a crunch, hosiery industry has shown positive trends this year.
President of the Ludhiana Jewelers Association Anand Sikri said the money generated by other industries was mostly spent on gold. "Industries and gold trade are interlinked as the profits earned are spent in purchase of gold by the industrialists with expectations of rise in the gold price," said Sikri.
He said the gold business was also facing a severe slump as there were no buyers in the market. "Marriage season as well as Diwali is the only hope for the jewellers," he said.
Orders by at least 3,000 dealers from across the country who visited the five-day buyer seller meet last month has given hopes to the industry.
Tribhuvan Thapar, a gold trader, said the gold cost on Wednesday was Rs 27,000, but even then no buyer of gold was coming. "The government of India has assured that there will be a cut in import duty from 10 per cent at present. However, no such measures have been taken up by the government, giving jitters to traders," said Thapar, adding that a better business in hosiery industry would also be beneficial for the gold traders.