Jewellery sales could be hit on by Currency crackdown

As buyers tried to convert their Rs 500, Rs 1,000 currency notes to 25, long queues were seen out stores on Tuesday night. That trend is anticipated to expire down from Wednesday, using jewellers unwilling to accept the notes now that the authorities has scrapped them.

Jewellers were accepting the notes as residual gold could be converted by themexchange. These could be revealed as Diwali sales. Many jewellers at Mumbai also accepted cash on Wednesday afternoon, associated with this unsold stocks.

However a vast majority of jewelry shops in Mumbai exhibited empty shelves since “trades are postponed till the advent of new stock which could be bought only with the new currencies that also using the limit of Rs two lakh to get non-PAN card holders,” said a single shopper in Kandivali, a western suburb of Mumbai.

The demonetisation of those currency notes is very likely to strike cash purchases of jewellery and gold at least say jewellers. This comes at some time high value purchases had already been impacted due to the compulsory requirements of pan card information.

“From today, we won’t accept Rs 500, 1,000 currency notes. There will be a confusion amongst consumers. There has been a drop in high value earnings on account of this pan card problem, also with this movement (scrapping notes), we really do see cash purchases coming down to at least a few days,” said Ashok Minawala, manager, All India Gems and Jewellery Trade Federation.

Others, like Aditya Pethe, manager of WHP Jewellers also said the Rs 500, Rs 1,000 currency notes won’t be accepted at their stores.

“There will be a great deal of instant dread. We do expect earnings of jewellery and gold becoming temporarily impacted, but things should settle down within the next 8-10 days, “said, Aditya Pethe, manager, WHP Jewellers.

There is a very big marketplace in the jewelry industry. Whether some may seem to park money here the government limitations on how much currency traded or can be removed, will hit lot of this business Trade sources say.

Traders say there is still a confusion on how much of this Rs 500, 1,000 currency notes they’ll be allowed to exchange in worth and what type of personal details they will have to submit, while exchange, as well as the smaller players might be unwilling to accept those currency notes from customers.

As such, jewellers cheque to grow steadily and expect purchases via credit/debit cards.

source http://www.christyjewell.com/jewellery-sales-could-be-hit-on-by-currency-crackdown/