Gold prices have declined slightly and this is a good time to accumulate gold, a senior official of the Commercial Bank said. According to the official, 24 carat gold is Rs. 49,900 per sovereign . A 100-gram bar is Rs. 612,000.
“Gold prices fluctuate from time to time. The gold to currency price too varies. The bank gives the online prices,” he said.
“We have long standing customers who buy gold bars. They are reputed jewellers and have registered with us. This is an ideal time to buy gold as the gold ounce rate in the world market is down.
“The Rupee value against the dollar is depreciating and fluctuating. The Sri Lanka Rupee rate is high and the gold sovereign rate which was Rs. 50,000 to Rs. 51,000 earlier, has come down to the Rs. 49,800 level at present. A gold sovereign contains eight grams of gold,” the official said. The Bank of Ceylon (BOC) also has a special counter to issue gold at the International Banking Division.
“There is no upper limit for the purchase gold from the counter. You need to have a licence to do gold business. We import gold according to market needs. However, today we are into the import of gold coins for special occasions for banks, the government, individual customers and corporates. We import less gold bars at present,” a BOC official said.
“Our imports are mainly based on the request of customers. Gold bars are basically for jewellery manufacturers who have licenses from the Gem and Jewellery Authority to make gold jewellery,” he said. For decades, Sri Lanka has been recognized as the key source of world-class, superior quality precious and semi-precious stones in the international gem and jewellery industry. Being the cradle of these ‘treasures’, the country’s gem and jewellery trade has been widely acclaimed even in ancient times, according to historical accounts.
Today, the industry has become a part of the local culture and tradition, becoming the main source of livelihood to many.
As the industry progressed, Sri Lanka became the venue for international exhibitions and trade shows, an opportunity that mirrors the aptitude of local jewellery designers and manufacturers, and while several jewellery houses have been put up throughout the years, Swarnamahal Jewellers has remained one of the leading manufacturers and retailers of gold jewellery in the country.
“We have loyal customers and there is a fairly good demand for our products. We buy gold locally and manufacture according to world trends. Our designs are well accepted and customers are satisfied with them,” a Marketing Department officer of Swarnamahal said. “Gold prices are fluctuating and we have the margins to cover it. We produce special occasion jewellery to make the day a memorable one. Our product quality is well-known and we have attracted more young customers,” she said. Swarnamahal Jewellers, one of the recognised companies in Sri Lanka, is operated by EAP Holdings Limited. A jeweller who wished to remain anonymous, said that the market is alright at present. “Gold prices depend on world prices and global political changes. Today, the price of gold is on the rise. The Middle East crisis and the petroleum prices have an impact on gold prices,” he said.
“We buy the gold locally from different sources. The demand for our products is good. We specialize in diamond and blue sapphires and also gem studded jewellery,” he said. One of the well-known jewellers in the country, Vogue Jewellers, said that the gold market is fluctuating and the gold price on Tuesday was Rs. 46,250 per soverign.
Though the demand from the customers is not very high, being the bridal month, there is good business,” he said.
“There is a good demand for bangles, necklaces, chains and big pendants. As we import our own gold to the country, we go by the market demand. We have long standing customers running into generations.
They come to us to obtain value for money. We have a good name in the market,” he said.
Under the Exchange Control Act, approval is needed to import gold. In 2002, through a special gazette notification 1263/10 dated 22.11.2002, the export and import of gold was relaxed and liberalized. ollowing which the authority to import and export gold was given to licence holders and the Central Bank is not involved in any kind of monitoring of gold related activities at present.