Rising gold prices impacting retailers

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KARACHI: Rising gold prices have been the cause of concern for the jewellery retailers as they are faced with higher input costs and lower sales, said analysts.

 

Gold prices have risen by nearly 13 percent in the last few months. In addition to rising gold prices, the currency depreciation has further increased gold input costs for the jewellers, they said.

 

“Times have been difficult as consumers have postponed their purchase of jewellery. Most of them are reusing the old sets or moving towards artificial jewellery altogether,” said Najia Anis a diamond jewellery designer.

 

Many established names in business have reported loss as they find it impossible to make profit in this current scenario. The rising inflation and rupee depreciation are the main reasons behind this problem, she said.

“People are saving money as they still see a very volatile economic situation ahead. As we all know that the rising gold prices also affects other precious metals, as well, so only a few people are buying jewellery these days,” said the owner of a jewellery shop.



Courtesy:  The News


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