KARACHI, Aug 25: The 10-gram gold rate jumped by Rs129 to Rs50,571 and with Rs150 increase the one-tola price touched the previous all-time high of Rs59,000 on Saturday on the back of rising yellow metal prices on the world markets.
International gold price reached $1,670 per ounce, up by $4 per ounce from Friday. On Thursday the 10-gram and one-tola rates wereRs50,142 and Rs58,500, respectively, while global gold rate was $1,662 per ounce.
World gold rates were rising over inflation concerns amid anticipation that US will take additional steps to boost economic growth.
President All Sindh Sarafa and Jewellers Association Haji Haroon Rashid Chand said consumers’ falling purchasing power continued to hit gold ornaments sales. He claimed that 60 per cent of the people arriving in the market to exchange old jewellery for new sets.
He said rising gold price has led to sharp increase in sale of artificial imported jewellery of Indian and Chinese origin.
Besides, high prices general security situation also drive people to opt for artificial jewellery for casual wear. The cases of ornamentssnatching from women, surge in dacoities and stories of gangs operating around marriage halls in media also discourage use of gold jewellery in cities in Pakistan.
He said though gold is mainly being imported by the jewellery exporters, local rates are being fixed keeping in view the international price fluctuations and also devaluation of the rupee against the dollar.
President Small Traders Association of Artificial Jewellery, Saleem Saba said that rising sale of artificial jewellery can be gauged from the number of shops and vendor dealing in these items. Acciording to an estimate currently there are about 8_10,000 artificial jewellery shops in Karachi alone against 1000 shops a few years back.
Not only artificial jewellery imported from India and China are popular, he said the sale of local jewellery is also booming. Indian jewellery is arriving through smuggling via Dubai while under invoicing of Chinese jewellery is also thriving.
He claimed that 90 per cent of gold artisans have been shifted towards artificial jewellery making in various parts of the city.
Saba said that an artificial complete bridal set can easily be purchased at Rs2000-5000 depending on the quality while a necklace set is priced between Rs1,000-1,500.