Goldrush: How Jewelers are Benefiting from the Withdrawal of Rs. 2000 notes
There is a goldrush in the country after RBI’s decision to withdraw Rs. 2000 notes. The central bank has given a deadline of 30th September and that has prompted many to rush to the jewelers. Report says there is a 20% rise in the purchase of gold.
The gold rush is due to hoarders. As simple as that! We all know that normal Indians don’t keep Rs. 2000 notes with them. Lower denominators are plentiful in circulation. Still, there are Rs. 2000 notes with a valuation of Rs. 3.62 lakh crore. Who do you think are the owners of this huge heap of currency of the highest order? None other than hoarders. They are the ones who are fueling a surge in the sales of gold. Why? Simple, they want to turn their black money into white.
In Noida, a salesman of a jewelry shop said to one of India’s premium news media, ” This pink note has created havoc since morning . “.
Similar scenes are being noticed in other parts of India as well.
A bullion dealer at Lucknow’s Chowk Sarrafa market echoed similar sentiments. Speaking to the same news media, he said, “The sale of bullion has shot up after the withdrawal of ₹2,000 currency notes was announced.” He further added that jewelers are selling gold at 10 % higher rates to those paying with Rs. 2,000 notes.
In Kolkata too, there was a gold rush in the city’s jewelry stores over the weekend. People are buying jewelry and gold with cash.
Finally, many of you may not know what hoarding is. Hoarding is a financial term. It is the practice of pilling up assets like money or goods. Financial hoarding is often a secret practice. The idea behind this is to avoid tax. One prime reason for scrapping Rs. 2000 notes is RBI’s intention to recover this black money and those who accumulate them.