Jisha Surya
Thiruvananthapuram: As the price of gold heads south and customers make a beeline to jewellery shops, gold merchants are feeling the heat. It is not the sudden plunge in price, but some schemes such as advance booking that worries them.
Bhima chairman B Govindan said that the plunge in gold price was a temporary phenomenon. However, he added that schemes such as advance booking might bring loss to the jewellers. “We don’t revoke the scheme for existing customers. Those who registered for advance booking will get the delivery as promised. But the scheme, which ensure minimum price for the customer, will bring loss to the jewellers,” he said. On whether they would continue with the scheme, Govindan said, “We will review the situation. A decision whether to continue or not will be made by the end of this week,” he said.
In the advance booking scheme adopted by leading jewellers, customers need to pay either the price at the time of booking or the price on the day when they take the delivery, whichever is the least.
Govindan said it was the right time for customers to purchase. “80 % of gold has been mined. Only 20 % remains. So definitely, the price will come up. This is a temporary phenomenon. It is the best opportunity for public to buy gold,” he said.
Ahammed Basheer, regional director of Malabar Gold, Kozhikode, said the current situation will not bring loss to jewellers as they rotate their stock periodically. “Now, people have a tendency to buy more gold in the form of coins and bullions. They also use the advance booking facility, which increases risk factor for jewelleries,” Basheer said.
The jewellers, however, said other schemes such as instalment facility for gold purchase are popular and it won’t bring any loss to the jewelers as it has been devised in a loss-proof manner.
Thiruvananthapuram: As the price of gold heads south and customers make a beeline to jewellery shops, gold merchants are feeling the heat. It is not the sudden plunge in price, but some schemes such as advance booking that worries them.
Bhima chairman B Govindan said that the plunge in gold price was a temporary phenomenon. However, he added that schemes such as advance booking might bring loss to the jewellers. “We don’t revoke the scheme for existing customers. Those who registered for advance booking will get the delivery as promised. But the scheme, which ensure minimum price for the customer, will bring loss to the jewellers,” he said. On whether they would continue with the scheme, Govindan said, “We will review the situation. A decision whether to continue or not will be made by the end of this week,” he said.
In the advance booking scheme adopted by leading jewellers, customers need to pay either the price at the time of booking or the price on the day when they take the delivery, whichever is the least.
Govindan said it was the right time for customers to purchase. “80 % of gold has been mined. Only 20 % remains. So definitely, the price will come up. This is a temporary phenomenon. It is the best opportunity for public to buy gold,” he said.
Ahammed Basheer, regional director of Malabar Gold, Kozhikode, said the current situation will not bring loss to jewellers as they rotate their stock periodically. “Now, people have a tendency to buy more gold in the form of coins and bullions. They also use the advance booking facility, which increases risk factor for jewelleries,” Basheer said.
The jewellers, however, said other schemes such as instalment facility for gold purchase are popular and it won’t bring any loss to the jewelers as it has been devised in a loss-proof manner.
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