Friday 12th July 2024

COVID-19 Nepal: Bullion Market Incurs NPR 7 Mn Loss

The gold price is expected to hit an all-time high of NPR 85,000 a tola after lockdown.


COVID-19 Nepal: Bullion Market Incurs NPR 7 Mn Loss

The COVID-19 pandemic continues to disrupt nearly every aspect of daily life in the global countries, including Nepal.

Even though Nepal has managed to control the spread of coronavirus in the country, it couldn’t withstand the socio-economic implications inflicted by the contagion.

Lately, the Nepali bullion market has incurred losses worth NPR 7 million due to the closure of business activities and nationwide lockdown.


Hike in Gold Price Nepal

Earlier on March 11, the bullion price recorded an all-time high of NPR 82,700 per tola due to the tensions between the US and China and trade war between the US and China.

Moreover, the gold price is anticipated to reach another historical record after the lockdown as the bullion price in the international market is regularly increasing at the moment.

The Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) Senior Vice President Manik Ratna Shakya claimed the gold price would climb over NPR 85,000 a tola after the lockdown.

Also Read: Silver Rate in Nepal Today and Price History in Nepal

Nepal Gold Jewellery

Despite the festering conditions, the Nepali Government has not yet taken any decisions in favor of bullion market players.

“Despite submitting many letters to the concerned authorities, no specific decision has been taken in the name of gold traders,” exclaimed Shakya.

The FeNeGoSiDA has urged the Nepali Government to reduce loan interest rates, provide discounts on import taxes and offer relief packages for business continuity after lockdown.

The coronavirus pandemic has affected not only the traders but also the workers including goldsmiths and sales assistants.

According to the FeNeGoSiDA, around 210,000 people are involved in the bullion market in the country. They include:

  • 80,000 traders
  • 100,000 goldsmiths
  • 30,000 sales assistants

As per the FeNeGoSiDA, the gold price has already increased by around 12% this year as the investors stopped their investments due to the COVID-19 uncertainty.

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