koala
23rd August 2010, 10:53 PM
Gold's glitter remains despite spiralling price
Kuvera Chalise/Eliza Manandhar
KATHMANDU: In the wake of complaints lodged by a few gold traders, Nepal Rastra Bank on Tuesday directed the banks to ‘temporarily’ suspend gold supply.
The suspension has resulted in shortage of gold supply in the market spurring price hike, say gold traders.
“While price hike due to gold shortage is making a big hole in customers’ savings, the government is losing revenue as well its stack of Indian currency,†Tej Ratna Shakya, president of Nepal Gold and Silver Dealers’ Association (Negosida), told The Himalayan Times. The central bank move of temporarily stopping the supply followed some traders’ complaint that they were not getting enough of the yellow metal.
Shakya said Negosida made efforts to manage gold supply among the traders by recommending maximum 200 grams per trader per day. “But the demand has gone up to 35 kg per day,†said Shakya, adding, the NRB-prescribed 20 kg per day is not enough to meet the market demand.
Suspension in the supply of gold ultimately fuelling price hike does not gel well with Teej — the festival of Hindu women when the gold trading picks up — approaching.
But Governor Dr Yubraj Khatiwada assured that NRB would take a decision in a day or two and that the central bank would ensure that the customers did not bear the brunt during the festive season. “The central bank took the decision (of temporarily suspending gold supply) after some traders complained that they didn’t get the precious metal,†he added.
According to Shakya, traders were forced to purchase gold from the Indian market to meet the demand. “Around Rs 1.87 million in IC goes to India if the central bank does not rollback the decision at the earliest,†he said.
During last Teej, around 25 kg of gold was traded every day and Negosida expects daily demand of the yellow metal to soar up to 35 kg during this Teej which is two weeks away, added Shakya. But with the scarcity already in the local market, the price of the precious yellow metal is spiralling.
Today gold was traded at Rs 36,500 per tola (11.664 gram) — Rs 50 more than yesterday. Yesterday, it had jumped by Rs 510 than a day ago and was traded at Rs 36,450 per tola.
Though the price has been continuously soaring since start of the week due to international market, yesterday and today’s price hike is simply attributed to shortage of gold in the domestic market. This week alone, gold price rose by Rs 750 compared to Sunday’s opening price of Rs 35,750 per tola.
There is growing suspicion over the increased gold import. “The demand is picking up every year, where is it being consumed?†governor said.
http://www.thehimalayantimes.com/fullNews.php?headline=Gold%27s+glitter+remains+des pite+spiralling+price&NewsID=254400
Kuvera Chalise/Eliza Manandhar
KATHMANDU: In the wake of complaints lodged by a few gold traders, Nepal Rastra Bank on Tuesday directed the banks to ‘temporarily’ suspend gold supply.
The suspension has resulted in shortage of gold supply in the market spurring price hike, say gold traders.
“While price hike due to gold shortage is making a big hole in customers’ savings, the government is losing revenue as well its stack of Indian currency,†Tej Ratna Shakya, president of Nepal Gold and Silver Dealers’ Association (Negosida), told The Himalayan Times. The central bank move of temporarily stopping the supply followed some traders’ complaint that they were not getting enough of the yellow metal.
Shakya said Negosida made efforts to manage gold supply among the traders by recommending maximum 200 grams per trader per day. “But the demand has gone up to 35 kg per day,†said Shakya, adding, the NRB-prescribed 20 kg per day is not enough to meet the market demand.
Suspension in the supply of gold ultimately fuelling price hike does not gel well with Teej — the festival of Hindu women when the gold trading picks up — approaching.
But Governor Dr Yubraj Khatiwada assured that NRB would take a decision in a day or two and that the central bank would ensure that the customers did not bear the brunt during the festive season. “The central bank took the decision (of temporarily suspending gold supply) after some traders complained that they didn’t get the precious metal,†he added.
According to Shakya, traders were forced to purchase gold from the Indian market to meet the demand. “Around Rs 1.87 million in IC goes to India if the central bank does not rollback the decision at the earliest,†he said.
During last Teej, around 25 kg of gold was traded every day and Negosida expects daily demand of the yellow metal to soar up to 35 kg during this Teej which is two weeks away, added Shakya. But with the scarcity already in the local market, the price of the precious yellow metal is spiralling.
Today gold was traded at Rs 36,500 per tola (11.664 gram) — Rs 50 more than yesterday. Yesterday, it had jumped by Rs 510 than a day ago and was traded at Rs 36,450 per tola.
Though the price has been continuously soaring since start of the week due to international market, yesterday and today’s price hike is simply attributed to shortage of gold in the domestic market. This week alone, gold price rose by Rs 750 compared to Sunday’s opening price of Rs 35,750 per tola.
There is growing suspicion over the increased gold import. “The demand is picking up every year, where is it being consumed?†governor said.
http://www.thehimalayantimes.com/fullNews.php?headline=Gold%27s+glitter+remains+des pite+spiralling+price&NewsID=254400