Jewellery business to get impacted! IBJA Secretary speaks to Anil Singhvi in exclusive chat

The impact of rising prices will be cascading as this will increase the making charges, price of jeweller and also the inventory levels. He said that the return on jewellery is not much

On the day that gold hit a new all-time record of over Rs 50,000, Prithviraj Kothari, President at India Bullion and Jewellers Association Ltd (IBJA) in an exclusive chat with Zee Business Managing Editor Anil Singhvi said that the rising bullion prices will have a big impact on jewellery business. Kothari said that the inventory of gold has more than doubled.

The impact of rising prices will be cascading as this will increase the making charges, price of jeweller and also the inventory levels. He said that the return on jewellery is not much.

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To import 100 kg of gold, around Rs 55 cr is spent and the profit is very small. And that means jewellery will also become expensive, impacting overall business.

Buyers will also cut down on their purchases. If somebody was earlier buying 10 gm gold, now may buy only 5 gm. The industry will definitely be hit, he added.

The coronavirus pandemic has already impacted the business.

Kothari added that people may even start investing in property in case the real estate prices come down instead of gold.

And what should investors do?

Kothari's advice to gold investors is to hold on to the precious metal. He said that gold should be sold only as per need.

On Wednesday, gold touched a record level of Rs 50,012 bringing cheers to the people who have invested in gold. While Gold has seen an uptick silver too is making appreciable gains.

Since 19 March 2020, while the gold prices have appreciated by 28 per cent, silver has gained by a whopping 96 per cent.

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At 5:10 the August Gold Futures were trading at Rs 49970 per 10 gram, up by over 0.9 per cent on MCX while September Silver Futures were up by over 5.3 per cent at Rs 60,390 per 1 kg

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