By Maduhara Padmasiri As the fluctuation of gold price continues, the industry is facing a period of stagnation. Last Friday (27th), a 24-carat gold sovereign price was reported as Rs 381,000. Gold prices fluctuated sharply during the first six months of the year. A 24-carat gold sovereign sold at Rs. 397,000 in January, rose to [...]
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As the fluctuation of gold price continues, the industry is facing a period of stagnation.
Last Friday (27th), a 24-carat gold sovereign price was reported as Rs 381,000.
Gold prices fluctuated sharply during the first six months of the year. A 24-carat gold sovereign sold at Rs. 397,000 in January, rose to Rs. 420,000 in February, and peaked at Rs. 425,000 in March before falling to Rs. 420,000 in April.
Speaking to the Sunday Times , Indika Bandara, assistant director at the Precious Metal Testing Laboratory of the National Gem and Jewellery Authority, said that short-term price fluctuations are likely to continue for some time due to current geopolitical and international market situations.
Prices have dropped, and this presents an opportunity for both jewellers and customers.
Despite the price reduction, there could be a lack of demand for gold these days, Mr Bandara said.
He also emphasised the value of gold as a long-term safe investment asset for financial security.
By the end of this year there will be an improvement of the gold business in the local market, he said.
However, the local gold and jewellery market is facing a period of stagnation due to price fluctuations.
Nusry Latheef, a gemologist and an associate partner at Ran Lanka Gem and Jewellery (Pvt) Ltd, said that gold price volatility has caused uncertainty among clients.
Gold trade facing a period of stagnation
“The prices are not stable all the time. This has killed our margin because multiple fluctuations occur in a day or a week,” Mr Latheef explained.
Sharing his experiences with clients, Mr Latheef said that even with constant price fluctuations, the demand remains and sellers can achieve successful business outcomes. U.D. Wijesinghe, the owner of Wijesinghe Jewellers, Mawanella, said business has slowed significantly relative to last year as customers are reluctant to buy new jewellery or gold.
According to him, while customers were interested in buying gold as a future investment last year, that demand has significantly reduced by now.
In response to current market conditions, Wijesinghe Jewellers has limited its gold purchases, choosing to operate on an order-only basis.
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Print Edition – The Sunday Times, Sri Lanka
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