Bullion sales see modest rise on Dhanteras day
Bullion sales saw a modest increase on Dhanteras on Friday, the very first day of the five-day-long Tihar festival which is thought to be an advantageous day to buy gold and silver. Covid-19 and higher costs hardly moistened the festive fervour as celebrators thronged jewellery stores to purchase the rare-earth element. Traders said that in […]
Bullion sales saw a modest increase on Dhanteras on Friday, the very first day of the five-day-long Tihar festival which is thought to be an advantageous day to buy gold and silver.
Covid-19 and higher costs hardly moistened the festive fervour as celebrators thronged jewellery stores to purchase the rare-earth element. Traders said that in spite of the pandemic and decreased earnings, sales were better than anticipated. Dhanteras is the most significant day for gold and silver dealers.
Gold costs closed at Rs95,200 per tola on Friday. On August 5, the price of the yellow metal crossed the six-digit mark, reaching a record Rs101,400 per tola. A tola is equal to 11.66 grams.
Manik Ratna Shakya, senior vice-president of the Federation of Nepal Gold and Silver Dealers’ Association, said that more than 25 kilos of gold were traded on Dhanteras day on Friday.
” Due to the sharp hike in prices and the pandemic, we were not expecting even a small rise in demand; but thanks to the tradition of purchasing even a percentage of gold for good fortune on this day, company was good,” Shakya said.
In Nepal, gold is a generally and culturally essential product throughout spiritual and marriage routines.
According to Shakya, gold sales in the Kathmandu Valley used to reach 50 kilos on Dhanteras in the past. “Usage was down 40 percent this year compared to last year,” he added.
A larger variety of buyers could be seen in the gold markets of New Road and Asan on Friday compared to other days, he stated.
Gold sales have been showing a steady increase in the previous week reaching around 12 kilos on Friday, Shakya told the Post.
Tej Ratna Shakya, previous president of the federation, said that organization had to do with half of what utilized to be seen in past years. “Making a transaction of 50 percent would be pleasing for bullion traders amidst this difficult situation,” he said.
Gold sales have been swelling every year ahead of Tihar with need peaking at 50 kilos on the day of Dhanteras, former president Shakya stated.
The rate of gold was hovering around Rs71,000 per tola throughout last year’s Tihar. Shakya said that with individuals offering their gold holdings drawn by an increase in costs and the arrival of fresh deliveries, there were sufficient stocks in the bullion market.
” I acquired just 100 to 150 grams of gold in the previous 3 months as there is no demand and stock was stacking with people selling the yellow metal,” said previous president Shakya.
Investors worldwide have actually poured their cash into the rare-earth element as the fall in need for oil and stock costs has made them rely on gold.
Even before the pandemic began in January, the trade war between the United States and China had currently started pushing gold rates upwards, as returns on investment were ending up being unsure, and gold is thought about a safe haven property.
Gold imports skyrocketed to Rs737 million in the very first quarter of the existing compared to Rs60 million in the very same duration in 2015.
Nepal imported gold worth Rs13 billion in the last , a 60 percent drop year-on-year from Rs32 billion.