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Jewellery shops open in T Nagar - Sovereign price shoots up by Rs.2320
Posted on: 13/Mar/2016 2:28:30 PM
In the recent budget presented in the parliament, the central government imposed 1 percent Kalal Tax on gold jewellery items.
Strongly protesting against this proposal, gold and diamond jewellery shop owners throughout Tamil Nadu struck work and closed shops.
Jewellery shop owners announced that they won`t open the shops until the new Kalal; Tax was withdrawn by the government.
Because of the strike, quantities of gold accumulated unsold. The price of gold started falling steeply. The price of sovereign to the unprecedented low of Rs. 2336/-,. 1 gm gold was sold at Rs. 2505/- and 1 sovereign gold was sold at Rs. 20040/-.
As all the jewellery shops remained closed, this benefit of gold price reduction did not reach the common public.Meanwhile, the strike is running for the 10th day.
All of a sudden, the jewellery shops in T Nagar, Chennai were opened.After a long break, buying crowd started building up. The pubic came with enthusiasm to buy jewellery especially because of the coming auspicious wedding dates and also the festive season.
With this quick business pick-up, price of gold shot up like a jet and reached the price as on the date of the first strike. The price of 1 gm gold went up by Rs. 290/- and the price of 1 sovereign went up by Rs. 22360/-.
The president of Chennai Diamond and Gold Jewellery Shops Owners Association, Mr. Jayanthilal, explained that special exemption was granted to permit opening of jewellery shops in T Nagar just in order not to upset the planned auspicious occasions like weddings and festivals.
As soon as the shops were opened, most of the jewels in stock were sold. So, the internal demand for gold increased leading to its price rise.
There are prospects for gold price to go up further from Monday, 14th March.
Permission has been given to keep the T Nagar Jewellery shops open till 17th March. However, the strike continues in other places.
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