Gold prices in India have started declining, following a similar trend on the global market, after hitting a record high of INR 56,200, or about $765, for 10 grams in August. The retail price of gold in the national capital on Friday, 11 September, the last trading day, was INR 51,280, or $698, per 10 grams.
Retail gold traders in India have started offering discounts on jewellery-making charges to attract customers ahead of the upcoming festive season, according to the Delhi Jewellers’ Association.
Kumar said that the losses suffered by the retail gold and silver dealers could only be met if the economy revives. “At present we are trying to bring down the cost of production to a minimum to maintain prices of jewellery, so as to be attractive to the buyers”.
In Delhi, the making charges for gold ornaments vary from INR 30 to INR 60 ($0.41-0.82) per gram, depending on the type of jewellery and the detailing of the design, hand-made or machine-made, etc.
According to the All India Gem and Jewellery Domestic Council, there are about 300,000 jewellers in the country, whose total turnover has been about 60-70 tonnes of gold a month. The council estimated a cumulative loss to the jewellers to the tune of over US $7 billion during the lockdown, especially as they missed the wedding and festive seasons, when the sales go up.
India enforced one of the most severe lockdowns from midnight of 24-25 March this year to mitigate the spread of the coronavirus in the country. While the federal government lifted the lockdown in a calibrated manner, with restrictions, it was still in force in all containment zones.
As of Sunday, India had a caseload of 4.75 million cases, with 973,175 active cases, according to the federal Health and Family Welfare Ministry.
Sourse: sputniknews.com
