KARACHI: Rising gold prices has always been a cause of worry for the jewellery retailers. As a result jewellers suffer from twin problems of higher input costs and lower sales.
Gold prices have risen by nearly 13 percent in the past few months. In addition to rising gold prices, currency depreciation has further increased gold input costs for jewelers, according to traders. And importantly, jewellers can do little as consumers defer or cancel their purchases with rising gold prices.
The drop in consumer sentiment link further ensured jewellery buyers stay away from showrooms. Times have been difficult as consumers have postponed their purchase of jewellery. Most of them are reusing the old sets or moving towards artificial jeweler altogether, said a jewellery designer. Many established names in business have reported loss as they find it impossible to make profit in this current scenario.
The rising inflation and dollar depreciation is the main reason behind this whole problem. Many jewellers are not even charging for stones and making so that they can stimulate the consumers to purchase jewellery. Market sources said people were saving money as they were still seeing a very volatile economic situation ahead. The rising price of gold also affects other precious metals as well. This is way only a few people are buying jewellery these days. – DialyTimes