Thursday, June 20, 2013

Jewellery Shops in Nepal still remain closed for the 9th Day

KATHMANDU, NEPAL

Nepali consumers did not get to buy gold despite the international price of the yellow metal dropping to the lowest in the past two and half years. The domestic price of gold has not even been fixed with the traders shutting down their shops for the past one week protesting the government’s action against cheating traders.

They have more reasons to not open their shops due to the fall in price of gold internationally. The traders, who were complaining that the government did not supply enough gold when the price was high, have not even bought gold from the banks now. The international price of gold dropped by 3.4 percent on Thursday to US$ 1,304 per ounce (28.349 grams), the lowest in the past 30 months. The price has fallen as the investors opted for government bonds instead of gold after the US Federal Reserve Bank changed its interest rates. The fall in international price ahs also affected the India market with the price falling by IRs 400 per 10 grams to IRs 28,000.

The Nepali price would have been fixed at around Rs 52,000 per tola (11.663 grams) but it has not been fixed since last Wednesday due to the ongoing protest by traders. The Nepal Gold and Silver Dealers’ Association fixes the daily price of gold and silver based on the international price. It has not set the price after fixing it at Rs 53,000 per tola on June 11. Transaction of gold and silver and other metals and gems has been brought to a grinding halt after the Nepal Gold and Silver Dealers’ Association and the Nepal Gem and Jewelry Association shut down the shops on June 12 to put pressure on the government to not take action against the traders that were found to be cheating during monitoring.

The dispute between the government and the traders had also started once the price started to fall drastically. The government had started monitoring after the traders did not sell gold when the international price fell significantly in the third week of April. The entrepreneurs have been protesting ever since. General Secretary of the Nepal Gold and Silver Dealers’ Association Manik Ratna Shakya claimed that the consumers have not been able to buy gold at the decreased price due to the government’s apathy. “We are ready to open the shops if the government were to meet our demands,” he said. There has been no dialogue after the entrepreneurs put an unreasonable demand of ending monitoring. The government is not in a mood to step back as the traders have technically demanded that the cheaters should not be punished.

Government officials said that discussions can be held about the standards for trading of gold and monitoring if the entrepreneurs were to come for dialogue opening the shops. “There will be no dialogue until they open the shops,” Director General of the Department of Commerce and Supply Management Narayan Prasad Bidari sated. “We are ready to hold dialogue about the monitoring standards while continuing the process of action,” he added. The government had monitored 10 jewelry stores in Kathmandu Valley in April and May. The entrepreneurs have been protesting after the government initiated action against three of those involved in serious offenses.

Source: Karobar Daily, 20th June 2013
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