Soaring price of gold turns Goldsmiths idle

AHMEDABAD - With the price of gold going through the roof, the number of customers of yellow metal has fallen drastically and left a majority of goldsmiths in Ahmedabad city of Gujarat sit literally idle.

Most of the goldsmiths fear a jobless situation. Already, thousands of gold workers have lost their jobs due to poor business in Gujarat.

Over the last five years, the goldsmiths and traders have witnessed an unprecedented crisis of suspense. They have been expecting that the soaring gold prices will come down to a price-level which will enable a brisk business in the industry once again.

However, the fluctuating prices of gold have inclined the traders towards MCX (Multi Commodity Exchange), which has ultimately affected the workers.

It may be recalled that MCX has been reckoned as the most ideal liquid commodity ever since the diversion of punters was associated with bullion (gold and silver) for the Multi Commodity Exchange of India (MCX).

Ahmedabad, a hub of gold workers in Gujarat, has at least 30,000 people from the industry who have lost their jobs or are sitting idle and looking for work.

Although the festive season has begun, the gold manufacturing units are idle with hardly any order to work for.

People complain of the high prices and their inability to afford the high cost of the yellow metal.

“It has become impossible for us to purchase gold in this festive season. If buying silver is becoming difficult for us, how can we buy gold? But anyhow we have to purchase it because it is necessary,” said Sonal, a customer.

According to Raufbhai, President of the Ahmedabad Gold Silver Workers Association, the Central government should reduce some amount from the current gold price to revive the condition of the workers as well as the industry. He suggests MCX should be de-linked.

“I want to request the central government to look into the issue. If the government can reduce rupees 2,000 to rupees 3,000 on the current price of rupees 15,000 per 10 grams, the industry can be revived,” says Rauf Bhai.

India is the biggest gold importer where domestic prices are largely correlated with international prices. This year between June and July, there has been a terrible decline in the import of gold.

Earlier, the industry imported 100 to 150 tonnes of gold but by July the import reduced to just 10 tonnes.

Because of the economic slump and the inclination towards MCX, 60 percent of the gold business is affected. By Ami Sharma (ANI)