Buyers ready, jewellers not: After the gold rush, a slump in sales

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In Vasant Kunj, the owner of an outlet who refused to be named said, “We kept the store open till late last night but since morning we have had to turn away customers coming in with invalid cash.”

In Pune, jewellery stores were flooded with calls as well as customers wishing to buy gold with Rs 500 and Rs 1,000 notes. “We turned down these customers. Though it is a good move by the government, there’s hardly any business now,” said Yogesh Shah, senior manager of Chandukaka Saraf and Sons Pvt. Ltd.

Kishor Sandesa of Krishna Jewellers said it was a unique situation where customers are willing to buy but stores can’t sell. “There is no business at all,” he added.

In Gujarat, the gold industry estimated a 70 per cent slump in sales. “Due to this announcement close to 70 per cent of the business has been hampered in jewellery as this business cannot function on notes of smaller currencies,” said Shanti Patel, president of the Gem and Jewelry Trade Council of India (GJTCI) & president of Gujarat Chapter of India Bullion & Jewellers Association. “Most jewellers did no transactions. Around 5 per cent branded shops had done brisk business Tuesday night in Ahmedabad, but bullion traders did not do much business.”