Team Herald
PANJIM: The gold and jewellery market was badly hit by the sudden demonetisation of currency notes of Rs 500 and Rs 1000 denominations. Traders in gold felt the pinch when virtually no customer visited their outlets on Wednesday.
The Margao market, in particular, witnessed some panic due to lack of information regarding withdrawal of Rs 500 and Rs 1000 currency notes.
“It is definitely a bold decision and we welcome it. Many people came to inquire about purchasing gold and wanted to liquidate cash. Even with gold prices rising from Rs 22,900 for 22kt 916 hallmark gold (libra) on November 8, to Rs 23,800 for 22kt 916 hallmark gold (libra) on November 9, people were interested in getting rid of Rs 500 and Rs 1000 notes. Proper information and guidelines were given to the staff to explain to and address their queries. Notices have been put regarding the same at the showrooms. Overall, business is quite slack and we expect few more days of confusion and slow business,” said Vikram Verlekar of Ulhas Jewellers.
Speaking to Herald, South Goa Gold Dealers’ Association President Pramit Raiker said, “It is a knee jerk reaction from the customers as today we did not have many people visiting our shops. I am confident that once banks reopen and the situation stabilises, positive sentiments will be reflected. I feel it is a good move and the entire industry along with customers, will have to look for new modes of payment other than cash as we are not accepting notes which have been banned.”
For customers it was day to make arrangements for their finances as marketing for gold became a non-priority.
“I am only concerned about Rs 100 currency notes now as Rs 500 and Rs 1000 notes have virtually no value. Even I am saving Rs 100 notes for immediate payment to our vegetable and fruit and milk vendors,” Sagar Pednekar, President of the North Goa Jewellers Association told Herald. “Yes, there is a bit of inconvenience caused to our customers during this festive and wedding season, but we should all remember that this is for our country and our future. As of now we are encouraging our customers to pay us by cheque or by plastic money.”
He added, “There was confusion on Wednesday as banks were closed but I think people will get used to using plastic money. The immediate benefit is that it will stop circulation of fake notes which has been a problem for jewellers.”
Pednekar also said that the long term benefits may be that as bank deposits will increase there could be a fall in the interest rates on loans, which will help the gem and jewellery industry.
