Hyderabad: Gold prices soared to an all-time high, edging close to the five-digit mark for the first time ever on Monday, much to the despair of those intending to buy the precious metal for weddings, following the worsened global economic situation. The question on everyone’s mind was no longer if the yellow metal would cross the Rs 1 lakh figure for 10 grams of 24 carat gold, but rather when.
In Hyderabad, the gold price was around Rs 99,500 in the spot bullion market at 9 pm on Monday, while it crossed the Rs 1 lakh mark in Bengaluru. Chennai, Mumbai and Delhi were on the threshold of the five-digital figure in the spot markets. Gold price in the spot market is inclusive of three per cent GST.
As footfall in their stores fell to an eight-month low, jewellers offered discounts over the market rate. Some jewellers were selling gold at Rs 99,000, while a few major gold retailers are offering steeper discounts.
A phenomenal surge in precious metal prices is also heralding a shift in people’s fashion. Instead of heavy traditional jewellery, a section of people are opting for lighter (18K) gold ornaments or exploring alternative jewellery options such as gemstone-studded silver pieces.
Speaking to Deccan Chronicle, local gold trader Ashok Shermal Jain said that the price had become completely unpredictable. No sentiment is determining the gold prices, he said. However, the gold sales have drastically come down in the last eight months.
The jewellers, he said, had faced a double-whammy — lower sales yet higher tax outgo.
“Though we had lower sales last fiscal, we paid higher taxes because of higher valuation of raw gold and ornaments available with us due to increase in gold prices. So we have paid taxes without making any earnings. Jewellery business is badly hit due to the steep rise in gold prices,” said Jain, who represents Pot Market Jewellers Association in Secunderabad, one of the major gold markets in the state, representing 270 wholesale and retail jewellers and traders.
He felt that the gold price could come down, as silver had done. Earlier, the silver price had crossed over Rs 1 lakh per kilogram, but has declined to Rs 96,000.
Indu Jain, a jeweller in Secunderabad said the gold price had never behaved in such an erratic manner. “We have never seen such a steep hike in gold price like it witnessed last year or in the last month,” he said.