Jewelers upbeat on gold demand this festive season

Bullion traders expect the daily demand for gold to climb to 45 kg this season, up from the daily demand of 35 kg recorded last year. They are anticipating better sales compared to last year as gold is cheaper this year compared to last year. Last year, gold price during this time of year was hovering around Rs 51,000 per 10 grams. This year, gold is hovering over Rs 45,000 per 10 grams. Traders, however, fear that persisting shortage of gold might affect their business in this festive season as well. “Demand for gold increases during festive season as women prefer to wear variety of jewelries during festivals like Teej,” Tej Ratna Shakya, immediate past president of Federation of Nepal Gold and Silver Dealers Associations, told Republica. Shakya, however, said jewelers will have to face difficulty in meeting the festive demand with the quantity of gold that they are currently getting from banks. Nepal Rastra Bank (NRB) supplies jewelers just 15 kg of gold per day through designated commercial banks. “Demand is increasing but the supply has remained the same,” Shakya said, adding that shortage might trigger smuggling of yellow metal from India and China. Commenting on fluctuation in gold price, Shakya said customers are still in wait and watch mood. “The demand will soar to more than 50 kg a day once the price becomes stable,” he added. Mani Ratna Shakya, president of the federation, many jewelers were not being able to create new designs due to shortage of gold. “We have asked NRB many times to increase gold supply quota on seasonal basis. We want the NRB to raise supply quota during Teej,” said Mani Ratna. The NRB had increased gold supply quota during the recently concluded wedding season.