Ahmedabad: To meet the urgent monetary requirements, especially medical emergencies, some gujaratis prefer to liquidate their gold assets.
About 28 metric tons of gold has been sold by people in the state since the plague of covid-19 pandemic, industrial players said.
The World Gold Council (WGC) has estimated 142 MT Gold recycled in India during a pandemic period from April 2020 to December 2021.
From here, Gujarat comfortably contributed at least 20%, said the Bullion trader.
Experts suggest that economic recovery has not been consistent in all sectors and classes of people with several acquires and the rest continues to fight since the pandemic.
Haresh Acharya, Director, Association of Bullion and Indian Jewelry (IBJA), said, “Recovery in trade and industry has sloped since the pandemic.
In certain sectors such as those and e-commerce, the growth is very phenomenal.
However, in several other manufacturing sectors , People’s income is still not fully restored given business disturbances.
A number of small traders are forced to close the store or find alternative income sources.
To pay debt or fulfill household expenses and emergency costs, many people have sold gold.
“Industrial players also said that Many families lost their only livelihood seeking during the second wave.
“Many in rural areas are also forced to sell gold to meet emergency medical expenses.
All of these factors cause a significant increase in gold recycling I.E.
sell gold for cash,” Acharya said.
‘Gold recycling witnessed a 15% wave’ According to the world gold council (WGC), while the 2020 pandemic year did see a surge in gold recycling, the trend saw a decline of at least 15% in 2021.
In fact, in 2021.
The third quarter of fiscal This, gold recycling fell sharply by 22% of India, suggesting WGC data.
“Gold recycling witnessed a 15% surge in India because of a pandemic because people wanted to meet their cash and capital needs.
Actually, a surge in gold prices also forced them to sell gold to order their profits too.
However, gold recycled dropped significantly During the last two quarters, “said Somasundaram PR, Managing Director, India, WGC.
Interestingly, the gold recycling saw a significant 33% increase in the first quarter of 2021-22 I.e.
April to June 2021, when the second wave Covid-19 hit.
Apart from the surge in recycled gold, there was a significant increase in absorption for gold loans too, according to Somasundaram.
“Various banks have launched a gold loan product remembering a surge in demand.
People in India tend to have sentimental values attached to gold and many do not like to sell it but otherwise mortgages on loans.
With a better return because of the surge in gold prices, many people choose Gold loans too, “he said.
Covid asked Gujaratis to sell 28 MT Gold to meet needs
