In India, gold stops shining

The increase in the price of gold and the economic ravages of the Coronavirus pandemic have dissuaded the Indians to buy this precious metal that they worship so much, which has left the jewelers in technical unemployment.

Two and a half months after the end of national confinement in India, the Zaveri Bazaar of Bombay, the largest gold market in the country of 1.300 million inhabitants, it is still empty.Most stores are closed and there are no clients in sight.

"We have this store for more than 40 years and I had never seen that the business was so bad," laments Madhubhai Shah, a 75 -year -old jeweler who is one of the few who have opened.

This Bombay market has been very beaten by the confinement decreed at the end of March, and which has meant the march of millions of migrant workers -many gold artisans -of large cities because there is no job.

"70% of our artisans have returned to their villages and production workshops are closed," confesses the AFP Madhubhai Shah.

The rise around 30% of the price of gold this year and the uncertainty generated by the health situation dissuade the Indians to buy jewels.India is the second world consumer of gold behind China.

Not even the arrival of the marriages season, which traditionally begins in October and usually causes families to throw the house out the window, has influenced the humor of the households.

CHIREJEEVI AHIRE AND HIS girlfriend have decided to break the customs for their marriage in December.They will not buy gold or jewels, although this is a good omen and allows you to mark your social status.

"Before, we wanted a great wedding and follow all the Indian traditions like our parents," this marketing manager who works in Bombay tells AFP.

"But with pandemic and uncertainty in the labor market, we have decided to reduce our gold expenses and save money in case they come badly," explains the 29 -year -old.

- Pad the gold -

According to the World Gold Council, consumption in India has fallen 56% year -on -year in the first semester of 2020.The demand in the quarter from April to June has sunk 70% to 63.7 tons, the lowest from the financial crisis of 2008.

In addition to jewels, many Indians retain bullion and gold pieces as safe value against inflation.Many committed it to loans or better interest rates.

Bhadshshd.000 rupees (2.260 euros, 2.$ 666) to compensate for the important losses suffered during confinement.

"At first, I doubted these jewels since they are an inheritance of my family but the times are hard," he tells AFP.

Unlike traditional credits, the one backed by gold "is easy to obtain and demand less formalities," he explains, which makes the process much faster.

"Current, gold offers better performance.As soon as the economy improves, reimburse the credit and recover my gold, "says the 39 -year -old farmer.

Gold will circulate again in India since consumers will recover the appetite for this metal, esteem Somasundaram P.R., India Director of the World Golden Council.

"People who have saved money due to holidays or expenses will invest it in gold," predicts.

Pandemia continues to havoc in India and shows no signals of improvement.Under these conditions, potential consumers such as Chieranjevi Ahire prefer to wait.

"It seems better to keep my money at the moment," says the young man."I'm not going to risk my financial stability by gold.It doesn't seem like a good idea, "ditch.

© 2020 AFP