Ban on Rs 500 and Rs 1,000 note will push many towards gold

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Ban on Rs 500 and Rs 1,000 note will push many towards gold The jewelry sector is happy with the government’s decision to ban Rs 500 and Rs 1,000 notes as they feel that this will make an increment in gold demand as people will have more faith in gold rather than the currency.
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"It will create havoc for a little while and the economy will also destablise. But overall, it is going to be good for the country. In fact, the jewelry industry will thrive as people will have more trust on jewelry than currency notes," Gitanjali Gems Chairman and Managing Director Mehul Choksi told PTI.

"This is a very good decision for long term especially for the organised sector. There could be impact on pure gold demand, which is good for jewelers,” PC Jewelers Managing Director Balram Garg told PTI.

Echoing these views, All India Gems and Jewelry Trade Federation (GJF) Chairman Sreedhar G V said: "This affects all industries, it will also affect the jewelry industry. We are in favour of the decision announced by the Prime Minister. There may be some problems for unorganized jewelers, but this will help them organized."

About 70-75 per cent of jewelers in the country are unorganized. But 25 per cent of the organised jewelers are contributing more than 80 per cent business, he added.
(image: IndiaTimes)
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