Dubai's famous Gold Souk specialized shopping center noted an almost complete lack of visitors and buyers of jewelry from India. In a good year deal with them could bring about 15% - 20% of sales of Gold Souk, and even more in terms of gold prices fall, according to the Gulf News report.
For the operators of a shop in Souk strike by the demonetization it was extremely heavy. Although gold trading center of some compensation provided more rapid growth of Chinese gold buyers in recent weeks. But this is not Indian visitors levels, and, in addition, Chinese consumers prefer products made of 18-carat, rather than 22-karat gold.
"Beyond the Gold Souk shops in areas such as Bur Dubai, also showed a decrease in buying interest from Indian visitors - said Siryak Varghese (Cyriac Varghese), CEO of Sky Jewellery -. What you see here is a complete mirror reflecting a sharp reduction in gold sales in India from November 8, when it was announced the demonetization. "
Indian demand for gold could fall further in the event that the government is still stepping up its actions against unrecorded income, to obtain tax on what is hidden in the banking cells throughout India.
Indian exchangers also can not help those who have remained in the hands of the old banknotes. The group company Joyalukkas said: "Currently, we do not accept and do not exchange any banknotes, coming out of a turn, taking into account the guidelines to be followed when the demonetization and we are closely monitoring the situation."
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