Thursday, March 6, 2008

Jewellers upbeat on sales despite soaring gold prices

Upmarket jewellers say that wealthy buyers can still afford unique and dazzling jewellery despite record gold prices. With gold prices closing in on $1,000 per ounce after a nearly 50 percent jump since the credit market crunch triggered a safe-haven buying from investors, jewellers at a luxury fair remained optimistic about sales this year.Due to the increase in oil price which is now coming at the rate of $103 a barrel will also be the main reason for the gold prices to be at the higher rate. Now in Chennai a 22 carat gold is now selling at the highest rate of Rs 1185.It is a rather difficult moment. But I believe people are still keen to spend, even a lot of money on something different, unique, emotional and these prices will go even at the higher rate in the coming years.High-end jewellery makers will manage to absorb gold price rises, because they have margins, they have brand.So the rate us not a big problem for them.But if this rate continues many middle class and lower class people in India will tend to suffer much and they will not by even a single gram of gold in the coming years.When the oil prices comes down the gold rate will also come at a normal rate.