Punjab's gold sale falls 70%

With the price of gold going up to a record high of Rs 8,850 per 10 gm for 24 carat, and Rs 8,400 per 10 gm for 22 carat, the sale of yellow metal has gone down by around 70 per cent in the city. A 25-year-old record was broken, when the gold prices went sky-high on Wednesday. Even people are frantically selling gold to make hay while the sun shines, dealers say.

The dealers rued that countries like Japan, China and Russia are involved into bulk buying of gold and that is why, it resulted in this price hike. Vikram Jain of Jain Sons Jewellery House in Ghumar Mandi said that due to this bulk buying my major countries of the world, the demand has gone up and supply is limited.

``That is why we are facing inflation in the prices of gold. For the last eight months, when the price was gold was Rs 7,200 per 10 grams for 22 carat, the gold price has been increasing on a daily basis. It jumped by nearly Rs 850 (per ten grams) in just a little over a week. This price is further expected to go up to at least Rs 10,000 per 10 grams for 22 carat gold till May, 2007. Because of this record high price of gold, our sales have gone down by at least 60 to 70 percent and our investment costs have gone up.''

The result of this steady northward trek of the prices is a frantic selling of gold and gold ornaments by people, with hopes to buy back the metal once prices start a southward journey.

Vikram Jain further added that very few people are willing to buy gold at this price.

``Majority of people are either selling it and high price or exchanging it with new gold. But, still selling is not done on a large scale. Presently, mentality of people is sell now and buy later and that is why we are suffering losses. We want that the government should intervene so that the prices can come in the reach of a common man.''

Mangat Ram Jain, President of Civil Lines Jewelers Association and owner of Jain Jewelers, Rani Jhansi Road said that its not only the jewelers of Ludhiana who are into losses, but, jewelers all over the country are suffering loss.

``Sales of almost every jeweler in Ludhiana have gone down by more than 60 per cent. All buying by people have been converted into sale.''