Bullion transaction drops by 30% to Rs. 1 billion during Tihar

By A Staff Reporter, Kathmandu, Nov. 21: Bullion market recorded a transaction of only around Rs. 1 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 30 per cent this Tihar festival compared to last year's Tihar festival.

Manik Ratna Shakya, president of FENEGOSIDA, said that gold worth about Rs. 700 million and silver worth Rs. 300 million were sold during the week of Tihar festival across the country.

The Kathmandu Valley has a 60 per cent share in gold transaction while its share outside the Kathmandu Valley is 40 per cent, he said.

According to him, around 90 kilograms of fresh gold and 2,000 kilograms of silver were sold during the Tihar festival.

Around 130 kilograms of gold and above 3,000 kilograms of silver were sold in Tihar last year.

He, however, said that above 50 per cent of the total transaction of Tihar was sold on the day of Dhanteras.  

Shakya said that around 50 kilograms of gold was sold on the day of Dhanteras.

The demand for gold decreased significantly in the domestic bullion market during the Tihar festival, said Taj Ratna Shakya, a gold trader.

The bullion market was badly affected even during the Tihar festival due to an increase in its price and a reduction in the purchasing power of people after the impact of COVID-19 pandemic, he said.

The transaction of gold worth Rs. 1 billion in Tihar festival was very low as Tihar is the main season for gold and silver trade, he said.

Around 30 per cent sales of gold and silver of the total transaction of the year occurrs in Tihar, he said.

Increment in gold price 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 and the price of other essential items increased.

He, however, said that the demand for gold increased during Tihar compared to its demand in Dashain festival.

The price of gold stood at Rs. 115,000 per tola this Tihar while it was Rs. 95,000 per tola around last year's Tihar festival, he said.

The gold price had set a record high of Rs. 117,000 per tola in the local bullion market on October 29, 2023.