Gold price soars beyond 10k per gram, to hit sales volume

Coimbatore: With the price shooting up beyond Rs10,000 per gram, gold is fast turning out to be an unaffordable luxury for most lower middle-class families in the district. Goldsmiths are also concerned about the skyrocketing gold price, which they fear could lead to further job losses.

Currently, 24K gold is priced at Rs11,073 per gram, while 22K gold costs Rs10,110 per gram in the district. Jewellers, however, seem to be unfazed by the steep increase in yellow metal price. They sounded confident about the business remaining stable, while agreeing that there would be a dip in the quantity of gold being sold. For example, a customer intending to buy eight gram of gold might now purchase only six gram owing to the price hike.

P Aanaiyappan, salesman at a jewellery shop, said the demand for gold would remain unaffected by the price hike. "Even when prices rose from Rs6,000 to Rs9,000 per gram, people continued to buy gold, and new jewellery branches were opened. Gold has become an essential part of family traditions, so the business will not be affected."

However, for people like Manju, a railway staffer, the situation is different. "As a middle-class person, buying gold is beyond our budget now. It has become a luxury only the elite could afford. Previously, we could buy small gold items, but now even that has become unaffordable."

A Shobana, a mother from Selvapuram, highlighted the cultural implications. "Gold is a part of family rituals like puberty functions, marriages and ear-piercing ceremonies. With our limited income, we can't fulfill these traditions. We might have to skip most such family ceremonies in the future."

B Muthu Venkatraman, president, Coimbatore Jewellery Manufacturers Association, says gold has now become a distant dream for the economically disadvantaged people. "The middle-class should view it as an investment. However, the high price has led to a 50% reduction in our workforce. We have urged the Union finance minister to reduce the import duty from 6% to 3% and GST from 3% to 1.5%, which could lower prices by Rs4,000 per sovereign and boost sales."