Why suddenly people are pledging gold jewelry..!?

Sowmiya Sriram
Why suddenly people are pledging gold jewelry..!?

People are suffering due to the rise in prices all over india, and some important expenses have also come, due to which people are pawning more gold and gold jewelry than ever before. Expenditure on tuition fees in the new financial year is becoming more important in india than current inflation. Many people have already started pawning gold jewelry to meet family expenses due to loss of income and loss of employment.
In this case, the gold jewelry loan portfolio of sbi Bank, the country's leading bank, has crossed the 1 lakh crore rupees mark in the june quarter to an all-time high. Not only this, it has captured 25 percent of India's total gold pawn trade and is in an unassailable position.
At the same time, Dinesh Kara has said that sbi Bank's gold loan business will increase significantly in the current financial year as the demand and trade for gold loans in india is very high.
Dinesh Kara also said that gold is the best asset when inflation is high and it has seen more trading in the june quarter than last year. Similarly, Dinesh Kara said that the bad debt of sbi Bank is only 0.29 percent of the gold loan, so this segment is very strong in the business.
Similarly, it seems that the number of personal loan buyers has also increased to a large extent during this period.Gold is the basic asset that people have in the time of Corona, even when children are enrolled in schools and colleges. In this situation, the central government increased the basic duty on gold import from 7.5 percent to 12.5 percent.
As a result, the price of 10 grams of gold is rising to Rs 2000, thus the number of new buyers of gold is likely to decrease significantly.
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