Scrap jewellery sales up as prices increase

INDORE: Madhuri Gupta is on top of the world after she earned a hefty amount by selling the old, broken jewellery that had occupied her locker for many years. Like Madhuri, a lot of customers are pouring into gold shops to sell old ornaments to cash in on higher gold prices.
Gold prices at the Indore spot market rose by around 4 per cent last week to over Rs 30,000 per 10 grams, according to local bullion traders.
A jubilant Madhuri said, "It feels so great to earn such a good amount on things not being used for years. I had kept my broken and old jewellery for such a long time as I wanted to sell these items at attractive prices." With a sudden jump in gold prices, sale of old gold has increased significantly in the city's Sarafa market. Customers, mainly homemakers and rural people, are selling off their old jewellery to take advantage of the higher prices. According to jewellers, 40-50 per cent trade currently is of old jewellery, whereas demand for new jewellery is sluggish due to high prices.
"Around 20-25 customers come to our store daily to sell old jewellery. Sale of old items has surged significantly at these prices because customers earn good money," said Rajesh Soni of DP Jewellers. According to Sarafa Association, currently daily trade in the market is about Rs 4 to 5 crore. There are over 1,500 shops in the Sarafa market.
Sarafa Association president Hukum Chand Soni said, "Mostly rural people are selling their old gold at these attractive rates because they need money for sowing season. Almost 50 per cent trade is of old gold these days, which is melted by jewellers and used in making new ornaments." Gold dealers said, Rs 26,000-Rs 27,000 per 10 grams is the most preferred buying level for customers, whereas demand drops at higher levels in anticipation of improvement in prices.