High gold prices leave Ahmedabad’s small time jewelers worried

AHMEDABAD - At least 60 percent of small-scale jewellery businesses have been affected in Ahmedabad as the price of gold increasing.

With the festival season round the corner, the number of customers at jewellery shops is dwindling, leaving shopkeepers worried.

“Ahmedabad has 80-85, now there are about 500-1,200 showrooms, including both big and small ones. And out of the 1,200, about 800 showrooms are on the verge of closure and about 200 have already closed down. Some have too much credit to pay back; some have taken to different professions,” said Rauf Sheikh, a goldsmith.

“The small showroom owners are incurring huge losses in their business. I am also a small shop owner and when there are no customers to buy gold, and then we start thinking of other options for business. The middle class people try exploring options. Up to 80 percent of business has close down,” he added.

According to goldsmiths, the high prices and their inability to afford the high cost of the yellow metal, has rendered them jobless.

India goes into a busy season August to November that sees festivals such as Dushehra, Diwali and Dhanteras.

However, the raised prices of the yellow metal may bring down the demand. (ANI)