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Gold Jewellery sales come down by 80 percent
Posted on: 17/Nov/2016 9:55:19 AM
Prime Minister had declared on midnight of 8th November that the currency notes of Rs. 500/- and Rs. 1000/- would be invalid. Immediately after this announcement, there were huge rushes in jewellery shops. The people used the Rs. 500 and Rs. 1000 currency notes with them to buy jewellery items.The sales frenzy went on till midnight in several shops.
As the sales pitch picked up, the price of gold also shot up the next day. However, with each passing day, the price of gold started coming down. With the falling price of gold, the sales of gold jewellery also went down.
As far as Tamil Nadu state is concerned,it is observed that most of the jewellery shops have no customers at all and nearly empty.The traders reported anxiously that the sales of gold jewellery had gone down by 80 percent.
When enquiring with the President of the Chennai Gold and Diamond Traders’ Association Mr. Jayantilal J Challani, he explained that the decision taken by the Prime Minister was a step in the right direction to get rid of the black money. Within hours of his announcement, there were huge crowds in jewellery shop to buy.
However, from the next day, the traders refused to accept the Rs. 500/- and Rs. 1000/- currency notes. So, the sales came down gradually and presently, it has come to no sales at all. The main reason for this is the shortage of circulation of money among the public.
From 9th November the sales of gold jewellery has come down by 80 percent. The 20 percent business done is through credit cards and debit cards.
As the sales have come down, the import of gold has also come down heavily. The people employed in the gold smithy trade have also been hugely affected by this loss of sales.
He informed that this situation is likely to continue till the time of normalcy of money circulation returns.
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