GUWAHATI: Following Finance Minister Nirmala Sitharaman's announcement of a customs duty cut on precious metals like gold, silver, and platinum in the Union Budget 2024, there has been a noticeable impact on jewellery prices in Guwahati. The move, aimed at making jewellery more affordable, has led to a drop in the prices of these metals.
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To understand the impact of this announcement, GPlus conducted an on-ground survey of jewellery shops across Guwahati, speaking to several vendors about current prices and the market's response to the duty cut, on Thursday, July 25..
In Beltola, a jewellery vendor shared that the price of gold (10 grams) has dropped to Rs 68,000 from the previous rate of Rs 72,000.
Talking to GPlus, a jewellery vendor in Beltola said, "The prices of gold (10 grams) is now Rs 68,000. The last rate was around Rs 72,000," he said. This decrease, although significant, is coupled with varying making charges which range from Rs 700 to Rs 900 per gram, or 15% to 20% in some shops.
In terms of making charges, they vary widely across different shops. Some jewellers charge between Rs 700 to Rs 900 per gram, while others apply a percentage-based fee, ranging from 15% to 20% of the gold price.
In Fancy Bazaar, another prominent area for jewellerry shopping, a vendor detailed the changes in both gold and silver prices. "For 5.22k gold, prices have decreased by 1.60%. For silver, 16.30k has seen a drop of 3.75%," he explained. The current price for 10 grams of gold stands at Rs 65,000 to Rs 68,000 while making charges are around Rs 700 per gram.
The reduction in customs duty has also impacted silver prices. A vendor in GS Road informed GPlus that the price of silver per kilogram has dropped to Rs 83,000, down from the earlier rates which ranged between Rs 90,000 and Rs 98,000.
"We are hoping that this decrease will attract more customers," he said optimistically. However, he also noted the potential downside for those who have invested heavily in gold or silver previously. "For those who bought as a long-term investment, this drop could mean a loss," he added.
Despite the immediate drop in prices, vendors expressed concerns about market stability. "The prices are still not stable. They have changed now, and many who have invested in jewelry may face losses," said another vendor. The price for 24k gold currently stands at Rs 70,000, with making charges between 15% to 20%.