The wedding season and fluctuations in gold price seem to have increased the demand for gold marginally in the city, post the Assembly election.
In a bid to help consumers and jewellers check the price trends and the current rate of gold, the Jewellers and Diamond Traders’ Association launched a mobile application recently.
On Wednesday, one gram of 22 carat gold was sold for ₹4,415.
Variation in price in the international market was one of the reasons for the volatility. Jewellers noted that the demand had gone up by 10%-20% after the election.
However, many were also showcasing additional stock for sales as there was a dip in supply from other places such as Kolkata, Mumbai and Jaipur owing to the pandemic. Though online sales had improved slightly, many customers preferred to visit shops for wedding purchases, jewellers added.
Jayantilal Challani, president, Jewellers and Diamond Traders’ Association, Madras, said business was better in tier-2 towns when compared to Chennai. Many customers who want to make small investments choose gold now.
“Only 50% of the customers are allowed in most shops as part of COVID-19 protocols. Several shops have started engaging staff members for work in batches. Many jewellers are managing with available stock as the situation is yet to stabilise. Supply of handmade jewellery from other places has dropped by about 40%,” he said.
Recalling that the gold price had peaked at ₹5,380 in August, Mr. Challani said a mobile application called MJDTA, which had several features and information on gold rates and price trends, would help customers and jewellers learn about the fluctuations in price trend and choose the right time to buy ornaments.
The association has also put up information for jewellers, including details regarding financial services and guidelines to open jewellery stores.