Amid a rapid surge in gold prices, jewellers in Tamil Nadu have taken a sensational decision that is expected to impact the market significantly. Over 30,000 jewellers in the state are preparing for major changes.
Around 30,000 jewellers in Tamil Nadu have decided to stop selling gold coins and also avoid promoting gold savings schemes and other promotional offers. The Tamil Nadu Jewellers Federation said the decision comes in response to increased import duties and government policies on gold imports.
According to the Coimbatore Goldsmiths Association, the price of gold rose by ₹1,000 per gram, increasing from ₹14,400 on Tuesday to ₹15,400 on Wednesday. Traders say nearly ₹3,000 of this price is due to taxes.
With the wedding season approaching, jewellers are closely watching the impact on demand. They also reported that sales have fallen by nearly 60% over the past year.
Jewellers have urged the government to promote gold monetisation schemes and also consider regulating digital gold and ETFs.
