Coimbatore: The price of gold hit has hit an all time high across the nation with Coimbatore being no exception.
Coimbatore: The price of gold hit has hit an all time 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 salesman, etc.
He added, "The gold prices continue to maintain an upward trend. Today a new history was made as it touched Rs. 37,700 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. "We have made a number of representations to the central government, but no steps have been taken to resolve 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 4,000 per sovereign," he said.
Simplicity brings to you the details of the steady and steep hike in bullion rates at Coimbatore (per sovereign):
July 4 - Rs 36,976
July 6 - Rs 36,880
July 7 - Rs 37,128
July 8 - Rs 37,536
July 9 - Rs 37,536
July 10 - Rs 37,536
July 11 - Rs 37,512
July 13 - Rs 37,568
July 14 - Rs 37,528
July 15 (Today) - Rs 37,728
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 salesman, etc.
He added, "The gold prices continue to maintain an upward trend. Today a new history was made as it touched Rs. 37,700 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. "We have made a number of representations to the central government, but no steps have been taken to resolve 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 4,000 per sovereign," he said.
Simplicity brings to you the details of the steady and steep hike in bullion rates at Coimbatore (per sovereign):
July 4 - Rs 36,976
July 6 - Rs 36,880
July 7 - Rs 37,128
July 8 - Rs 37,536
July 9 - Rs 37,536
July 10 - Rs 37,536
July 11 - Rs 37,512
July 13 - Rs 37,568
July 14 - Rs 37,528
July 15 (Today) - Rs 37,728