June 23 – With the significant rise in gold prices in the local markets, people are attracted to sell their jewelries.
The flow of people to the jeweler shops has increased for the last two days to sell their ornaments instead of purchasing the fresh ones after the prices of gold crossed Rs. 64,000 per Tola on Thursday, said Tej Ratna Shakya, a gold trader.
“I think 10 kilograms of jewelries is being sold per day by the consumers inside and outside the Kathmandu Valley for the last two days. If the gold prices will increase or remain the same price in the local market, the flow of customers willing to sell their gold items will go up,” he said.
According to him, consumers want to make a profit taking benefit of this situation by selling their jewelries as most of the consumers used to purchase ornaments instead of raw gold as investment.
“For the business, gold traders buy ornaments from their customers even there is not a legal provision to take return gold from the consumers. However, the traders will not be able buy the jewelries if the flow of customers keep of increasing as the traders have a limited cash to run their business,” he said.
The demand of fresh jewelries declined to 10-12 kilograms from 25 kilograms within a week due to increase its price, he said.
The gold price has set a new record day by day on Thursday and Friday. The gold price has set a record on Friday by trading Rs. 65,000 a Tola while per Tola of gold traded at Rs. 64,000 on Thursday and Rs. 63,000 on Wednesday.
The conflict between Iran and America is attributed for the increase of price in the international market of which impact has been seen in local market as the domestic gold price depends on international market price.
Foreign investors are attracted towards gold as safe investment which contributed to increase its demand, resulting in the increased prices.
The price of gold increased to US$ 1,380 per ounce on Friday while it traded at US$ 1,344 on Wednesday. The gold price increased by Rs. 6,000 per tola within last three weeks. It had traded at Rs. 59,500 per Tola on May 28.
“We, the traders, are worried about the decline in gold transaction even in the wedding season as the traders had been awaiting the season to boost their business. But our business has been affected badly,” Shakya said.

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ECONOMY, english

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