Gold trade estimated at Rs 7 billion during Tihar
KATHMANDU, Nov 3: Gold traders have sold gold worth nearly Rs 7 billion during Tihar festival this year. According to the Federation of Nepal Gold and Silver Dealers' Association, gold jewelry and ornaments were in high demand during the festival.
“The final data is yet to be tallied. But we estimate that our total business stood at nearly Rs 7 billion this Tihar. The business of gold was high during this Tihar compared to Teej and Dashain festivals. However, the transaction volume is lower compared to last Tihar,” Dharma Sundar Bajracharya, general secretary of the federation, told Republica.
Dhanteras, a day during the Tihar festival, is considered an auspicious day for purchase of gold or silver items. It is believed that purchase of gold or silver items during Tihar brings prosperity in life.
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“It has been a trend to buy gold, silver or other new metal items on the Dhanteras day. Thus, there was a growth in our business during Tihar, which holds religious value and is associated with wealth,” said Bajracharya.
The increase in gold price had been pushing down demand of gold in the domestic market for several months, and Tihar came as a driver for growth of business of the precious metal, according to dealers.
While traders say that the daily demand of gold used to be up to 50 kg during high season and 10 kg during off season, there was a slowdown even during the high season when gold price started to climb five months ago.
The price of gold, which had climbed to a record high of Rs 73,500 on September 4 this year, fell to around Rs 71,000 during Tihar festival. The price of silver was Rs 860 during the festival.
In previous years, the business during Tihar used to account for nearly 20 percent of transactions of an entire year, according to dealers.
Dealers are not optimistic of having the same level of annual business this year.
Besides festivals, the wedding season also boosts the business of gold when demands for jewelry and ornaments run high.
“Looking back, Tihar has provided us a respite from business slowdown. Now, we are eyeing the wedding season (December, January and February). After analyzing the transactions in these three months, we will be able to tell the actual demand of gold and silver in the market,” said Bajracharya. “Due to the slump in the market, some dealers are already in a mood to quit their business,” he added.
