Hong Kong protests could affect jewellery trade of approx Rs 500 cr: Jaipur Jewellers Association president

The business prospects of nearly 300 merchants in Jaipur, who are planning to attend the Hong Kong Jewellery and Gem Fair next month, could get affected due to the ongoing anti-government protests in the island territory.

Jaipur Jewellers Association president Sanjay Kala said the traders could lose business worth Rs 500 crore.

"The protests in Hong Kong have been going on for several months. This unrest has taken a major turn...If the situation does not stabilise, then close to 300 merchants from Jaipur, who plan to set up shops at the Jewellery and Gem Fair there, will face difficulties and trade of approximately Rs 500 crore will get affected," Kala told ANI here.

 

More than 700 people have been arrested since the demonstrations escalated over two months ago after the pro-Beijing administration of Hong Kong announced a controversial extradition bill to allow authorities to send suspected criminals to mainland China for prosecution, according to Al-Jazeera.

That bill has since been shelved, but protesters have continued with their call for democratic reforms in the special administrative region and easing of Chinese mainland influence on daily life in the Asian financial hub.

Kala said the upward trend in gold prices is likely to continue in the coming days in view of the uncertainty in the market caused by US-China trade war and other factors.

"If this uncertainty in the international markets continues, then the price may rise further as the big investors, such as central banks of various nations, will invest in gold. The uncertainty due to the China-America trade war is making investors put money in gold," he said.

"There is also some impact due to the increase in the duty on gold. Further in the international markets too, the price has risen. Coupled with the drop in the value of rupee, the price of 10 gm gold is touching Rs 40,000 and it may rise further," he added.

Kala advised people to invest in gold and silver as it is expected to give good returns and is a safe option too.