Coimbatore: The price of gold hit has hit an alltime high across the nation with Coimbatore being no exception.
Coimbatore: The price of gold hit has hit an alltime high across the nation with Coimbatore being no exception.
While many business sectors are facing steep declines due to the COVID-19 crisis, gold price keeps rising amid investor rush to safe haven assets. Experts say with the world experiencing an unprecedented financial cataclysm due to the Coronavirus outbreak, many deem gold as a safe and viable option for investments.
Speaking to Simplicity, the president of Coimbatore Gold Jewellery Manufacturers Association, B. Muthu Vekatraman said Coimbatore is famous for its jewellery products. There are more than 1,00,000 persons in the city who, along with their families are dependent on this business, including jewellers, goldsmiths, jewellery salesmen, etc.
He added, "The gold prices continue to maintain an upward trend. Today a new history was made as it crossed 37,000 per sovereign (8 grams of gold). Already the steep incline has heavily put the overall business in a tight spot. While we usually sell 200 kg of gold per day, the current crisis and the resultant lockdown have drastically brought down the transactions to 60 kg a day."
He feels this trend would hold steady in the days to come. He said "Not only individuals, but also banks, private finance institutions, etc., have started to divert their investments toward gold. Experts predict that at the dawn of 2021, a sovereign of gold may cost an enormous Rs 64,000."
He lamented that the government does nothing to improve the situation. "On behalf of various associations from our sector, we have made a number of representations to the central government, but no steps have been taken to solve our issues. We have asked the government to reduce the import duty for gold from 12.5% to 4% and reduce GST from 3% to 1.5%. If the government agrees to this, it will help us witness a price reduction of Rs 4,000per sovereign," he said.
Speaking about the shocking incident of a few GRT employees brought from Chennai testing positive, he said,, "It is really unfortunate that a few employees of a jewellery shop have tested COVID-19 positive. We appreciate the efforts taken by the state and the central governments in their war against the virus. We request that testing be further increased. There are more than a lakh of people employed in our sector in the district. At present, only a microcosm of them have taken tests. We are ready to cooperate with the administration to conduct special camps for testing all of us, right from the proprietors to the employees."
Simplicity brings to you the details of the steady and steep hike in bullion rates at Coimbatore, from June 10:
June 10- Rs 35,952
June 11- Rs 36,296
June 12- Rs 36,208
June 13- Rs 36,416
June 15- Rs 36,072
June 16- Rs 36,240
June 17- Rs 36,376
June 18- Rs 36,408
June 19- Rs 36,456
June 20- Rs 36,864
June 22- Rs 37,032.
While many business sectors are facing steep declines due to the COVID-19 crisis, gold price keeps rising amid investor rush to safe haven assets. Experts say with the world experiencing an unprecedented financial cataclysm due to the Coronavirus outbreak, many deem gold as a safe and viable option for investments.
Speaking to Simplicity, the president of Coimbatore Gold Jewellery Manufacturers Association, B. Muthu Vekatraman said Coimbatore is famous for its jewellery products. There are more than 1,00,000 persons in the city who, along with their families are dependent on this business, including jewellers, goldsmiths, jewellery salesmen, etc.
He added, "The gold prices continue to maintain an upward trend. Today a new history was made as it crossed 37,000 per sovereign (8 grams of gold). Already the steep incline has heavily put the overall business in a tight spot. While we usually sell 200 kg of gold per day, the current crisis and the resultant lockdown have drastically brought down the transactions to 60 kg a day."
He feels this trend would hold steady in the days to come. He said "Not only individuals, but also banks, private finance institutions, etc., have started to divert their investments toward gold. Experts predict that at the dawn of 2021, a sovereign of gold may cost an enormous Rs 64,000."
He lamented that the government does nothing to improve the situation. "On behalf of various associations from our sector, we have made a number of representations to the central government, but no steps have been taken to solve our issues. We have asked the government to reduce the import duty for gold from 12.5% to 4% and reduce GST from 3% to 1.5%. If the government agrees to this, it will help us witness a price reduction of Rs 4,000per sovereign," he said.
Speaking about the shocking incident of a few GRT employees brought from Chennai testing positive, he said,, "It is really unfortunate that a few employees of a jewellery shop have tested COVID-19 positive. We appreciate the efforts taken by the state and the central governments in their war against the virus. We request that testing be further increased. There are more than a lakh of people employed in our sector in the district. At present, only a microcosm of them have taken tests. We are ready to cooperate with the administration to conduct special camps for testing all of us, right from the proprietors to the employees."
Simplicity brings to you the details of the steady and steep hike in bullion rates at Coimbatore, from June 10:
June 10- Rs 35,952
June 11- Rs 36,296
June 12- Rs 36,208
June 13- Rs 36,416
June 15- Rs 36,072
June 16- Rs 36,240
June 17- Rs 36,376
June 18- Rs 36,408
June 19- Rs 36,456
June 20- Rs 36,864
June 22- Rs 37,032.