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NRIs selling jewellery to cash in on high gold prices
Amidst recession and job losses, Britons of Indian origin and others have been flocking to jewellery shops to cash in on rising price of gold, selling their rings, chains and even dental braces made of gold.
Amidst recession and job losses, Britons of Indian origin and others have been flocking to jewellery shops to cash in on rising price of gold, selling their rings, chains and even dental braces made of gold.
The price of gold reached an all-time high of 757 pounds an ounce earlier this month, and scrap gold dealers are reported to be offering up to 100 pounds for a set of braces.
Jewellers are worried that they will be left with a lot of stock if the price drops.
In the east Midlands town of Leicester, which has a large Indian-origin population that supports the 'Golden Mile' comprising several jewellery shops, a surge in people offering to sell their jewellery has taken many shop owners by surprise.
Advertisements on television, radio and in newspapers have alerted people to current prices of gold and jewellers say that has placed them into a buyers' market.
The Golden Mile in Leicester is reputed to be a major centre for jewellery in Europe, and jewellers there have close links with the jewellery industry in Gujarat.
Dharmendra Dhanak, a partner at JP Dhanak jewellers, said: "I think about 65 per cent of my customers are selling me things rather than the other way around. In 35 years, I've never seen anything like it".
"In 1976, gold prices were similar but people weren't selling. Three years ago, it was about 6 pounds per gram but now it's nearly 20 pound".
