While the abnormal increase in rates of gold has severely hit bullion trade in Tiruchi, poor and middle class buyers have been facing the brunt of it.
Though the rates of gold have generally been witnessing an increasing trend, the current phase of it, according to industry sources, is “unprecedented” and “highly abnormal”. One gram of gold (22 carat) was sold at ₹10,240 on September 12 in Tiruchi. The price for 24 carat gold was ₹11,171 per gram. The rates went up by ₹931 and ₹892 respectively in 10 days.
It was ₹6,425 for one gram of 22 carat gold and ₹7,009 for 24 carat gold on August 9, 2024. Thus, the rate has gone up by more than ₹4,000 a year.
If a buyer wants to buy one sovereign of gold ornament, she or she will have to shell out between ₹90,000 and ₹95,000, including making charge, wastage, and Goods and Services Tax (GST).
Industry leaders say the bullion trade is witnessing testing time in view of the current phase of increasing trend. They say the current phase is “mind boggling”, which is not good for the traders and the buyers, especially the rich. For a section of buyers, who still prefer to invest in gold, the abnormal increase has raised confusion among them on whether it was a natural rise or manufactured rise.
