Gold prices go up_ but business down

The gold market of the country has been hit hard due to the coronavirus and repeated hike of price in the local market. Customers are few and far between in jewelry shops as price hiked on several occasions and social ceremonies came to a halt in the country since March due to coronavirus. As a result_ many goldsmiths have become jobless and jewelry shops were forced to lay off or cut wages of workers. According to jewelers_ sale of the gold has declined around 80 per cent although markets started to open after Eid-ul-Fitr. 25 per cent jewelry shops might close if this situation continues for 2 or 3 more months_ feared the jewelers. Bangladesh's annual demand for gold is between 20_000 and 40_000 kgs. About 10 per cent of the demand is met by melting down gold from old ornaments. Rest of 90 per cent were imported through baggage rules as there was no legal way of import. Gold bar import by baggage rules comes down to zero as air connectivity got halted due to coronavirus. Also_ prices soared in the global markets. A price gap of Tk 4000-5000 per bhari always exists in the local market compared to the global market. Jewelry owner association leaders repeatedly gave assurance that the gap would reduce by Tk 3_000 if gold bars can be exported legally. The government last year approved the country s first ever gold policy and gave gold dealership licenses to 19 companies. They started exporting gold legally last month. Yet there is no indication of decline in gold price. Bangladesh Jewelers Association president Enamul Haque told Prothom Alo that the sector has been hit the hardest due to coronavirus situation rather than price hike. He said a section of customers will always buy the precious metal no matter how high the price rises. Enamul said many businessmen in the sector are being forced to lay off or cut jobs of workers. Many businessmen are selling off jewelries from shops to manage their families_ Enamul added. Except 15-20 brand shops_ rest of around 10_000 jewelers of the country are small or middle scale enterprises. There are around 50_000 goldsmiths in the country. Around 20_000 goldsmiths work in hundreds of gold shops in old Dhaka s Tanti Bazar. 99 per cent of them do not have any fixed salary. For making per bhari or 16 anas of jewelry_ they get 2 anas. Most of the goldsmiths of Tanti Bazar have left Dhaka for their village as they do not have any work here.