BHUBANESWAR: As the withdrawal of Rs 2,000 notes from circulation came into effect on Tuesday, jewellery stores in the state capital saw a marginal spike in sale of gold, silver and other precious metals. However, no panic buying was evident in any of the big or small jewellery outlets.
City jewellers informed they were receiving more enquiries about price and making charges of all kinds of gold jewellery ever since the announcement by RBI but the actual purchase was only 10-30 per cent more than the regular sale.
Director of Khimji Jewellers Mitesh Khimji said all the seven Khimji jewellery showrooms across Odisha witnessed a 30 pc surge in jewellery sales since Monday. “Majority of the transactions from this 30 pc sale were made using Rs 2,000 notes. This is beyond the regular wedding purchases seen during May,” he added.Unlike some parts of the country where people are paying a premium of 5 to 10 pc on gold prices to flush out Rs 2,000 from their cash holdings for buying jewellery, this isn’t the case in Bhubaneswar, Mitesh informed.
Meanwhile, a drop in the price of gold was witnessed on Tuesday. While cost of 10 gram of 22 carat gold was Rs 290 less than Monday’s price of Rs 56,000, that of 24 carat gold originally priced at Rs 61,000, was Rs 310 less (exclusive of taxes) on the day.
With many weddings planned in June, jewellers said the spike in sale can also be attributed to the ongoing wedding season. “Since we are already buying gold for my daughter’s wedding now, I am using the Rs 2,000 notes to make the purchases instead of depositing it in a bank or exchanging it,” said a buyer from Nayapalli, Dinesh Mallick. On the other hand, though no such rise in gold and silver sale has yet been witnessed in neighbouring Cuttack, there has been a shift from cash to digital payments in the city.
Vice-president of Odisha Jewellers Association Sourav Ray said UPI has been the new mode of payment post-Covid.“But we have not noticed any panic buying like it was during 2016 when the Central government demonetised Rs 1,000 and Rs 500 notes. Though sales are usual as of now, we have to wait for a few more days to see how many Rs 2,000 notes come into gold purchase,” he added.