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Business Exclusive Headlines News

Jewellery shops offer new for old gold

Mumbai, July 12( ) : Jewellery shops facing shortage of gold due to curb on imports is now offering public attractive schemes to exchange old for new jewellery. The old gold will be recycled to make new jewellery with BIS hallmark.

Last year, around 80 tonnes of old gold were pumped into the system but this time they hope to mop up 200 tonnes.

Leading jewellers Rajesh Exports, Gitanjali and TBZ are having schemes to bring old gold back into the market to ensure supply of the metal since RBI is cutting gold imports. According to estimates, 20,000 tonnes of gold are lying in Indian households.

The trade association of jewellery has asked the members to draw up schemes to lure people to change their old gold with new ones. The jeweller will give new hallmarked gold with 100% purity. The Gitanjali group will be melting and assaying the gold in front of them for free; a 100% credit will be given to the customer for the gold volume present in a particular item. If the old gold is from Gitanjali, they will give an extra 3% exchange bonus. At least 15-20% of gold sold through Gitanjali stores will return, feels the store.

Tribhovandas Bhimji Zaveri (TBZ) set up special old gold counters at its stores. This was during the peak season in March. Since June and July are weak seasons for gold trade, TBZ has stopped it and will start the campaign when demand increases.

Shop doing retail has stopped coin sales and bars. Both these commodities are used for speculative trading. Banks have already stopped trading coins and bars along with Reliance Capital. No credit for imports and bulk consignments for only gold jewellery exporters, are orders from RBI.

Globally gold price is coming down on dollar getting strengthened but India the largest importer is yet to drop prices. Though it fell by Rs 2000, the yellow metal today recorded a modest increase.