Dhanteras is coming soon and the price of gold has dropped from Rs. 63,500 to Rs. 61,200 per 10 grams. However, the election code has affected the business in Hyderabad. The streets where jewellery shops are located are empty this year. Traders are facing restrictions on carrying cash and there are surveillance squads in each lane, causing difficulties for both traders and customers.
The price of gold reached a high of Rs. 63,500 on October 28 but has since fallen to Rs. 61,200. The price of 10 grams of 22-carat gold has also dropped from Rs. 57,410 to Rs. 56,250.
The sales of jewellery shops have been low due to the election code. People are not visiting the shops as police are seizing gold valued above Rs. 50,000. Manufacturers are also unable to supply jewellery to retailers because any cash transaction beyond Rs. 50,000 could be scrutinized.
The model code of conduct has negatively affected the business. Customers are afraid to carry cash for purchasing gold as amounts beyond Rs. 50,000 could be checked.
This year, there are very few customers visiting jewellery shops during the wedding season. Sales are low and the market is dull compared to previous years.
Due to the election code, goldsmiths are facing difficulties in carrying gold and there is a risk of seizure. Artisans who work on gold from the Old City also face problems and fear being taken into custody.
