November 30, 2007	Friday	Ziqa’ad 19, 1428

KARACHI, Nov 29: Sale of gold jewellery sets plummeted by 40 per cent this year as compared to last year, while in the last two months, its sales plunged by 60 per cent owing to rising gold prices in the local markets triggered by an upward rally in yellow metal rates in global markets.

Currently, the marriage season is going on and people are out to buy gold jewellery sets, but market people portray a dismal picture of the gold sales.

It is extremely difficult to gauge the real sales figures in the absence of any sales data available from any government department, while traders usually do not show actual sale because of fear of facing harassment from tax officials.

Bullion dealers offer their wild guesses on sale trend based on consumers’ presence in the market and their placement of the orders.

President, All-Sindh Sarafa and Jewellers Association (ASSJA), Haji Haroon Rashid Chand, said rising domestic prices had squeezed buying power of the people who either place future orders or make spot buying of gold jewellery sets of lower weight.

Besides, they also bring their old jewellery sets for sale to nullify the impact of rising gold prices.

A person who used to order five tolas of gold jewellery sets now prefers to place orders for buying two to three tola sets. However, gold usually inspires with its weight.

He said people have stopped investing in gold for the last one month since the market has been showing a negative trend in local prices.

However, he said that gold price has surged by Rs4,000 per tola since Ramazan only. Currently, 10 tolas of gold bar is priced at Rs186,000.

Local gold prices had hit a record peak of Rs16,457 per 10 grams on Nov 26 and fell to Rs15,942 per 10 grams on Nov 29.

World gold price was quoted at $800 per ounce on Thursday as compared with $830 per ounce on Nov 27.

President, All-Pakistan Gem Merchants and Jewellers Association (APGMJA), Saeed Mazhar Ali, also offered almost identical views as of Haroon Chand.

He said people usually allocate a budget for buying gold jewellery sets on a marriage season. In case prices go up, their allocated budget gets upset and they have to settle it by purchasing jewellery of lower weigh.

Since local prices have shown a downward trend, people have stopped making investment in gold, and they are now watching the market situation, he said.

Even friends and relatives prefer giving gifts of gold related items of lower weight to the bride.

Coming back to investment in gold, the National Commodity Exchange Limited (NCEL) decided on Thursday to extend the gold futures trading hours from Dec 3 in view of investors and market participants’ demand.

However, local traders said that only two people from Sarafa Bazaar have been active since its operation from May this year, and so far no new member in gold trading has been listed at the NCEL which shows lack of interest of the Sarafa market jewellers.

On the contrary, the managing director of the NCEL, Asim Jang, reckoned that only two Sarafa Bazaar players had been active in the NCEL, but people are now showing great interest in yellow metal trading at the NCEL since its price in world market surged