Demonetisation has provided a golden opportunity for jewellery shopkeepers in Kalaburagi city. The shopkeepers in Saraf Bazaar locality have made quick money in the last one week by selling gold at rates far higher than the market rate by accepting the demonetised Rs. 500 and Rs. 1,000 notes.
While the rate of 24 carat gold was Rs. 29,950 for 10 g on Saturday, some jewellers confirmed on condition of anonymity that they had been selling it between Rs. 42,000 to Rs. 50,000.
Those with unaccounted money are increasingly contacting jewellery shopkeepers to strike deal to convert their money into gold.
A goldsmith said that a few jewellery shops made brisk business throughout the night for the first two days after the announcement of demonetisation on November 8.
Though the situation was not the same now, buying gold at far beyond the market rate was common, he said.
“Even smaller goldsmiths with small turnovers have made good money within a short period,” he said.
Besides gold merchants, some are capitalising on the situation and selling small quantities of their gold jewellery in their homes at Rs. 38,000 per 10 gram by accepting Rs. 500 and Rs. 1,000 notes.
“This has helped shopkeepers to dispose of Rs. 1,000 and Rs. 500 notes they collected by selling gold to black money holders,” said a jeweller.
Those with unaccounted money are increasingly contacting jewellery stores
