Lovers of jewelry in Nepal are facing a test as prices of gold have hit record high on September 15, 2024. FENEGOSIDA said that fine gold has been trading at Rs. 1,56,800 per tola and this was up from the previous trading rate of 1,56,300 per tola.
It has led to talks about the causes behind this impressive rise and its effects on the nation’s economy and consumers as well as the investors. This is not the only effect which has been observed and seems to be part of a movement which has been witnessed over the past few weeks. Earlier, only two days before, on September 13, 2024, fine gold in the market had reached a new record high at Rs. 1,56,300 per tola which showed the acceleration of the market.
Another variant of gold is called Tejabi gold and the current price as per today is Rs. 1,56,100 per tola and has gone up by Rs. 500 from the previous price of Rs. 1,55,600 per tola.
Similar to gold, this upward trend in prices is being reflected in the silver too which has increased by Rs. 40 per tola to be at Rs. 1900 as against Rs. 1860 per tola in the market the preceding day.
That the price of gold and silver have both been on the rise in the recent past may well be pointing to a trend of precarious nature that is inherent in precious metals, further being an indication of the substantial economical forces that exist not only locally but also globally.
This has been hailed by the experts as due to several causes such as the turbulence in the world economy, the volatility of exchange rates and the rising desire for individuals to invest in safe haven commodities. Persistent geo-political risks and uncertainty on inflation in key economies have seen investors across the world shift towards the purchasing of gold; traditionally accepted as backward hedge during volatile periods.
However some people have Questions and reaction over rising gold prices in Nepal. To the investors and people with gold assets the increase in the price is good news, something that puts gold as one of the best investments to make. But for consumers most especially those intending to organize weddings, or those looking forward to buying gold for cultural and religious purposes the high prices are a serious handicap.
The jewelry industry in the country, one of the most importation sectors of Nepals economy is closely observing these trends. Though high gold prices are beneficial for an increase in value of the existing stock, they are not so commodious as they can negatively impact the demand for the particular product and hence lead to a slump in the sales figure. There is a change in dieting: light jewelries and searching for alternatives to plain gold because people can not afford to spend big sums of money anymore.
It has also received the attention from the government and the financial institutions. The foreign exchange policies of the Nepal Rastra Bank, the central bank of Nepal, may require fine tuning to counterflank the effects of increasing prices of gold in the nation’s inflation and economic stability. There are talk concerning possible ways of easing the flow of gold imports and promoting the increase of savings in some other form.
As Nepal still sail through these unknown waters of the precious metals market, the upcoming weeks will be decisive in respect to whether it marks the beginning of a new trend in the gold market or just a short-lived market bubble. However, the record high in gold price has brought into the fore the versatility and mystery of the metal in the Nepalese economy and society.
