Shabaz M, an entrepreneur who was scheduled to get engaged on February 29, has postponed his engagement. The reason is that the price of gold has skyrocketed to Rs 4,380 per gram as on Tuesday, due to the impact of the coronavirus outbreak, and with people investing in the precious metal as a safe option when the pandemic broke out.
“Although the engagement is a small affair, we have to buy gold items as a ritual. The increase in the price of gold has come as a shock to us. The families of mine and my fiancee’s are waiting for the price to drop. Hence, we decided to postpone our engagement and have informed all our relatives,” said Shabaz.On a similar note, Pooja Shree, an IT employee, said, “This is the wedding season, and my wedding is scheduled next month. We are waiting for the rates to fall. Three of my cousins, whose weddings are in April, are also hoping that by then the gold price would reduce.”
Tapan Patel, Senior Research Analyst, HDFC Securities, disclosed that people are investing in gold as a safe asset, which has led to its prices increasing. “In January, with the coronavirus spreading beyond China, people started investing in gold as a safe option, which has led to the rise in gold prices,” he said.Meanwhile, the increase in gold prices has also taken a toll on gold store owners, who also cite the coronavirus outbreak in China for the spurt in gold prices here.
“Due to the epidemic, the China market is down. Many factories and industries have shut down. Part of the gold is being imported from China, but with the shutdown in that country, there is a shortage here. The Chinese are also investing in gold for security due to the prevailing situation. The share markets are also down. Although this is the wedding season, 50 per cent of business has dropped. With the Akshaya Tritiya falling on April 26, we are not sure if we will even get customers,” a jewellery store owner explained.Prasad Babu, owner of Sri Ambati Jewellers at Jaynagar 3rd Block, said, “The increase in prices has made a big impact. We are facing a big loss, exceeding 50 per cent. We have seen business getting affected over the past five weeks.”