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Gold business weighed down in India - 21st August 2020
Jewellers in the traditionally lucrative Indian gold market are struggling. The value of gold has soared but fears around the Coronavirus have kept sales down.
Months after India lifted its strict lockdown many shops remain shut and there are few customers in sight.
While Mumbai gold market Zaveri Bazaar is the nation’s largest, it hasn’t escaped the pandemic. Many skilled gold workers forced to return to their villages during lockdown have not yet returned.
In addition, rocketing gold prices have seen engaged couples reevaluating wedding customs around jewellery, with fewer making purchases for their marriage ceremony.
People are, instead, securing badly needed loans using gold jewellery and gold bars.
Mr Somasundaram is managing director of Indian operations for the World Gold Council.
Somasundaram: "The growth will come back and once the growth comes back you will see that demand for gold also rises. It's also culturally something which we can't disassociate from the Indian traditions."
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