Despite upcoming wedding season, gold sales down by half due to election

BENGALURU: The wedding season is just round the corner, but with the Election Model Code of Conduct (MCC) in force ahead of the Lok Sabha election, gold business has been affected and sales are only going down.

Ahead of the upcoming wedding season, the gold price has crossed Rs 68,000 per 10 grams, but sales has declined as people are wary of purchasing gold as the election code of conduct is in force.

Ravikumar, treasurer of the Karnataka Jewellers Association, said the gold business has declined because the election code of conduct heavily affects the business. “On the other hand, wedding season has started and demand for gold has increased at international market. Money and gold cannot be carried or transported from one place to another due to the code of conduct. Some people stopped buying and transporting large amounts of gold because of avoid risk. The police check vehicles to seize illegal transportation at every check posts and illegal gold will also be seized”, he  said.

“If the seized gold is legal, it should be returned to the holder after providing necessary documents. All these are a headache. There are restrictions on transport of cash and gold. People have not come to purchase as they are avoiding the risk. There has been a 50 per cent decline in the business at gold jewellery stores due to this. We suggest customers follow the election code of conduct. Shop owners are preferring digital  payments”, he added.