Insignia Consultants | After the gold rush: Asian, Mid-East sellers flood jewellery market
After the gold rush: Asian, Mid-East sellers flood jewellery market
MUMBAI, March 24 (Reuters) - As gold prices jump to successive highs, jewellers across Asia and the Middle East are grappling with displays losing their sparkle as customers race to cash in their old jewellery and coins.
If the rush to sell continues, it could ultimately lead to lower imports into major markets, potentially tempering gold's rally, retailers and industry experts said.
Spot gold topped $3,000 an ounce for the first time on March 14, and continued climbing last week to bring year-to-date gains to more than 15%, driven by a powerful combination of political and financial uncertainty.
The stunning run higher follows an almost 30% rise in 2024, and has driven increased business for often-overlooked scrap gold buyers in Zaveri Bazaar, India's largest bullion market.
Textile trader Unmesh Patel said he had made a return of more than 25% selling four 10-gram gold coins bought less than seven months ago after the Indian government cut import duties on the metal.
"I just decided to sell instead of waiting for prices to go up even more," he said.
Domestic gold prices in India have risen more than 32% since it cut import duties in July, to a record high of 89,796 rupees per 10 grams.
