This Gold Stock Falls By 2% After Tamil Nadu Jewellers Declare To Stop Gold Coins Sale & Saving Schemes

After Prime Minister Narendra Modi's suggestion to stop buying gold for one year, the jewelers in Tamil Nadu have decided to halt sales of gold coins and also discontinue gold savings schemes. Amidst this announcement, Tamil Nadu-based leading gems and jewelry company Thangamayil Jewellery share price dropped by more than 2% on BSE during the trading session of Friday.

Tamil Nadu To Halt Gold Coins, Gold Savings Schemes:

The Tamil Nadu Jewellers Federation (TNJF) came forward in support of central government's decision of hiking import duty to 15% from earlir 6% on gold and silver till March 31, 2027. This is expected to reduce burden of high imports for the country's economy and also conserve foreign exchange reserves.

As per reports, TNJF president B. Sabarinath stated that they urged people to avoid unnecessary gold buying in the current economic conditions.

Following this, Tamil Nadu jewellers collectively made a voluntary decision to stop selling gold coins and discontinue promotional schemes linked to gold savings and investments.

Furthermore, TNJF requested the central government to also ban Gold Exchange Traded Funds (ETFs) and DigiGold schemes, citing that these digital gold schemes indirectly motivate physical gold buying.

Thangamayil Jewellery Share Price:

Thangamayil Jewellery Limited (TMJL) is one of the fastest-growing gems and jewellery company in India, with its dominance in the market as a chain of retail jewellery stores across several districts in Tamil Nadu.

At the time of writing, Thangamayil share price traded at Rs 3590.35 apiece, down by 0.9% on BSE with market cap of Rs 11,159.53 crore. In the early trade, the stock dropped by over 2.1% to hit an intraday low of Rs 3,545.00 apiece.

How Gold Tamil Nadu Holds In India?

South India dominates the gold consumption market in India with 40-45% share, followed by 25% share in West India, 20% share in North India and 15% share in East India. In south, states like Kerala and Tamil Nadu are the biggest gold consumers.

Tamil Nadu leads in both private gold ownerships and share of household assets, which is more than 28%. This makes Tamil Nadu a key market for precious metals.

Gold Rates In Chennai:

Gold rates in Chennai, the capital city of Tamil Nadu, crashed sharply on May 15. 24 carat gold price plunged by Rs 10,900 in 100 grams to Rs 16,30,900 and 10 grams gold slipped by RS 1,090 to Rs 1,63,090. Gold is still expensive in Chennai compared to other cities.

The gold price in Chennai stands at Rs 16,309 per gram for 24 karat gold (99.9% purity), Rs 14,950 per gram for 22 karat gold (91.6% purity), and Rs 12,470 per gram for 18 karat gold (75% purity).

However, in May month so far, gold rates are up by 7-8% in Chennai.