VIJAYAWADA: The number of people exchanging their old gold ornaments in exchange for new ones, has increased as a result of the sudden increase in the price of gold, according to jewellers in the city.
The ongoing US-China trade war is to blame for the trend, as the US has imposed a 10 per cent tariff on all goods imported from China. As a result, the prices of gold in the market have sky-rocketed to as much as Rs 37,250 per 10 gm in India (Rs 38,950 per 10 gm in Vijayawada as of August 8).
“In the past week, we have witnessed an unprecedented increase in the number of customers who approached us for buying new gold ornaments by exchanging their older ones. Since prices have increased, people are getting value for money on every deal. They are happy as they are now able to purchase better designs at a fraction of the price as compared to their earlier possessions,” said the branch manager of Lalithaa Jewellers on the condition of anonymity.
A customer named Khyati Bhalla, who is supposed to tie the knot in December said, “Prices keep changing frequently, but we can’t wait for the ‘right time’ every time. Moreover, since my wedding is three months away and I still have enough time to buy jewellery, I am buying it now as this month is considered to be auspicious.”
Surprisingly, despite the high rates, the demand for gold has not decreased. “People are buying gold biscuits and coins in exchange for their old ornaments as gold is considered to be the haven of safe investment by people. People consider it a safe option as it usually does not lose value. Rates of other investment options such as land and stocks keep changing on a daily basis, but rarely is there any drastic change in the price of gold,” said VN Lakshman, owner of Madhubani Jewellers.
The customers also seem to throng the shops in the wake of Varalakshmi Vratam being celebrated today. “The month of Shravana is considered to be auspicious for making investments. Also, the season of festivals is nearing,” said Savitri Shetty, who runs a saree boutique in the city.