KATHMANDU: Transaction in the Nepali bullion market has scaled down to half despite the marriage season. Crowds are seen in jewellery shops but overall transaction is 80 per cent below the average. It is because of the skyrocketing gold price.

Gold price in the Nepali market

has reached Rs 29,065 per 10 gram (Rs 33,900 per tola), a record. The domestic market has experienced a growth of

Rs 5,000 in a month. But, this is not a factor downsizing the sale. “Actually, the fluctuation is hampering the market,” said Sunil Shrestha of RK Jewellers at New Road, “If the price stabilises, the market will flourish.”

Nepali jewellery shops are selling 12 kg gold per day, half of the demand during marriage season — 25 kg per day, Nepal Gold and Silver Dealers’ Association (NEGOSIDA) data revealed. “Only 15 per cent people are buying new gold,” said NEGOSIDA president Tej Ratna Shakya. People are compelled to reduce their gold demand seeing the price, he added.

Indu Ghimire, an inhabitant of Sinamangal, was in Gems Ornament Emporium to exchange her old jewellery for

new. “I am looking for jewellery for my daughter but can’t buy more,” she said,

“I am here to exchange old for new.” She said she would buy two-three tolas at

the new price rather then buying eight tolas. Sabina Kafle, Binu Pant and others seen in jewellery shops at New Road had the same plan.

“The price is irregular so I don’t

prefer to buy more,” said Pant, “I don’t want to take risks.” People are usually buying two-five tolas gold for the marriage season, which is less than half the earlier normal demand. Still, jewellery shop owners are optimistic about normalcy returning. “We are expecting a market revival by the next Nepali new year,” said Nirmal Krishna Shrestha of Gems. The price hike has also affected silver ornaments but sales of gold-plated jewellery is high. People are turning toward gold-plated stuff and its sale has increased by 30 per cent.

“I will buy some gold-plated jewellery,” said Kafle, “It is the best alternative

to meet the crisis.” Meanwhile, silver priced Rs 476 per tola in the market.