Jewellery stores in Visakhapatnam are witnessing a notable increase in customer traffic following a significant decline in gold prices due to the latest import duty adjustments announced in the 2024 Union Budget. Finance Minister Nirmala Sitharaman has revealed a reduction in the import duty on gold from 15% to 6%, igniting a wave of enthusiasm among gold purchasers.
The timing of this price reduction holds particular significance as it aligns with the commencement of the Sravana month on August 3, a period revered by many for buying gold, especially for conducting the Lakshmi Pooja ritual with gold during this time. Consequently, women and families are flocking to jewellery stores to capitalize on the reduced prices.
Presently, 22 karat gold is retailing at 6,400 per gram, while 18 karat gold is priced at 5,200 per gram. Just last week, prices were notably higher, with 22 karat gold nearly touching 6,000 per gram and 18 karat gold at 25,700 per gram. The decrease in gold prices coincided with a reduction in making charges, now slashed from the usual 2-3% to 1-2%, depending on the piece.
Mouli Krishna, a jewellery shop proprietor in Visakhapatnam, shared with Deccan Chronicle, “Business is on the rise. The price of gold has substantially decreased, and with the Sravana maasa season approaching, footfall has increased significantly.”
Despite the positive outlook, there is a mixed sentiment among buyers regarding the fluctuating gold prices. Manikanta, another jewellery store owner, highlighted a sense of caution among certain customers. “Some individuals anticipate further price drops. While they admire the pieces, they are hesitant to make purchases in hopes of witnessing additional reductions. However, compared to yesterday, the gold price has risen by 90 per gram. Predicting price fluctuations is challenging and is an inherent aspect of the business.”
Among the eager buyers is Ratna Kumari, observed buying gold for her children. Speaking to Deccan Chronicle, she expressed, “I have come to purchase a Lakshmi locket and bracelet for my children. Every Sravana month, I buy gold for the Lakshmi Pooja. This year, the decrease in gold prices has encouraged me to buy early, and the reduced charges are an added benefit for all of us.”
As the festive season approaches, the future trajectory of gold prices and whether the current trend will continue to entice more buyers into the market remains to be seen.
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