It might take a year for the gold sales to return to normal level
Posted on: 18/Jan/2017 5:57:27 PM
Due to the demonetization effect, the sales of gold has come down by 80 percent. Though the situation is improving gradually, the President of the All India Gem and Jewellery Traders Associaton, Mr Nitin Khandelwal, has informed that it might take up to a year period for the normalcy to be restored in gold sales.
He further informed that the demand for gold went down by 80 percent after demonetization. However, the situation has somewhat improved from 31st December to the extent of 30-40 percent.
As it ws the wedding season when demonetization was announced, the recycling of gold was much in vogue almost by 300 percent.
It is expected that over a longer period, the demonetization will bring good results.The public would come forward to buy jewellery items through credit and debit cards. This will bring in more transparency. On a long-term outlook, this trend is good for this field. Though it is supposed to bring in good results in a long period, when we consider the present situation, it might take about a year for the system to be restored to normal levels.
Th Head of the Jewellery and Gems Export development Council Mr Praveen Shankar Pandya explained that about 60 percent of the export organisations are systematised whereas 40 percent are not systematised. The majority of this 40 percent operate mostly in villages. The council is linking them through mobile banking.
Quite fortunately, the central government announced the demonetization measure after the festival of Deepavali. The working staff in this industry had gone on annual leave to their native places. Our manufacturing units also remained closed for annual vacation. Hence, we were not affected to a great extent. Otherwise, if not for this holiday period, our industry would have been affected quite severely.
Though this industry has been affected overall by 4-5 percent, the unsystematised part of the industry would have affected by 10-15 percent. We expect that the production would be restored to normal levels in the next 3-4 months.
We expect that the demonetization will bring in beneficial results in the long range for the employees in this industry.
The World Gold Council had earlier informed that the demonetization would affect the Indian Economy and also the demand for gold would come down.
