Kathmandu, January 21:

Demand for gold is falling like never before, says the Nepal Gold and Silver Dealers’ Association (NGSDA).

Even the arrival of the wedding season has failed to address the decline in the demand for the glittering metal.

“The bad news is demand for gold is falling over time. Not many people go for gold these days. One can say gold is still glittering, but demand is falling,”

Tej Ratna Shakya, president, Nepal Gold and Silver Dealers’ Association, told The Himalayan Times today.

“No one will believe that demand for gold, which was 35 kg a day in 2000, could fall to 10 kg a day this year around,” Shakya said.

“Another reason for the falling demand of gold is its very price. The price has shot up and remained there ever since crude oil became expensive.

There was a time when the price of crude oil (required to process gold) did not matter. But a stage came when it did,” Shakya said.

“Given the institutional analysis of the relation between gold and crude oil, the price of per ounce (31.26 gm) of gold may remain anywhere between $615 and $640,” Shakya said.

“Things have come to such a pass that the price of gold in the market will be guided by demand for heating fuel.

Lesser the demand for crude oil, higher the price of gold,” Shakya said, shedding light on the latest scenario.

The week gone by saw a fall in price from Rs 14,855 on Monday to Rs 14, 815 per 10 gram on Friday.

But that alone cannot be expected to spur on demand for largely contraband gold just yet.