By A Staff Reporter
Kathmandu, Nov. 23: Bullion market recorded a transaction of only around Rs. 2.34 billion during the recent Tihar festival across the country.
According to the Federation of Nepal Gold and Silver Dealers' Association, trade of gold and silver decreased by more than 75 per cent this Tihar festival compared to last year's Tihar festival.
Manik Ratna Shakya, senior vice president of FENEGOSIDA, said that gold worth about Rs. 1.64 billion and silver worth Rs. 700 million was sold during the week of Tihar festival across the country.
The Kathmandu Valley has a share of around 60 per cent of gold transaction while other 76 districts share 40 per cent gold trade, he said.
According to him, around 200 kilograms of fresh gold and 7,000 kilograms of silver was sold during the Tihar festival.
Around 700 kilograms of gold and above 7,000 kilograms silver was sold in Tihar last year.
The demand for gold decreased significantly in the domestic bullion market during the Tihar festival, he said. However, the demand for silver was almost in line with last year’s demand.
He, however, said that the demand for gold has increased during Tihar compared to its demand in Dashain festival. No significant transaction of gold and silver occurred during Dashain festival this year.
The bullion market was badly affected even in Tihar festival due to increase in its price and the impact of COVID-19 pandemic, said Tej Ratna Shakya, a gold trader.
The transaction of gold worth Rs. 1.64 billion in Tihar festival was very low as Tihar is the main season for gold and silver trade, he said.
Around 25 per cent sales of gold and silver of the total transaction of the year occurred in Tihar, he said.
Increment in gold price and impact of COVID-19 has affected the gold market badly this year, he said, adding that consumers were not encouraged to purchase gold and celebrate festivals as their income dropped because of the COVID-19 pandemic.
The price of gold stood at Rs. 94,000 per tola this Tihar while it was Rs. 73,000 per tola around last year's Tihar festival, he said.
The income of people was affected following the enforcement of nationwide lockdown to prevent and control COVID-19, he said.
He, however, said that almost 50 per cent gold of the total transaction of Tihar was sold on the day of Dhanteras.