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Dhanteras sales jump 20% over lower gold, silver prices

Average gold prices that were around Rs 32,500 per 10 grams last Diwali, were hovering at Rs 27,500 this year

This Dhanteras saw jump in sales of jewellery in various parts of the country by at least 20 per cent over last year following lower gold and silver prices in the retail markets. People are preferring lightweight jewellery and gold coins over traditional jewellery.

In Ahmedabad the local jewellers expected the business to cross Rs 250-300 crore till Diwali (October 23).

Average gold prices that were around Rs 32,500 per 10 grams during last Diwali, were hovering around Rs 27,500 per 10 grams this year. Also, silver prices this year before Diwali were around Rs 39,000 per kg compared to around Rs 49,000 per kg last year during Diwali.

In Ahmedabad, upbeat over the lower prices of the yellow metal, as many as 60 jewellers under the Ahmedabad Jewellers’ Association had launched the grand shopping festival "Swarna Utsav" which concludes on Diwali, with primary objective to recover the losses incurred by them in the past six months due to lack of business.

People buying gold today at sion, Mumbai,

"During Dhanteras the sales of gold and silver has been significantly higher than last year. We expect sales to rise by 15-20 per cent this year over last season," said Shantibhai Patel of the Ahmedabad Jewellers’ Association. He said that this was due to lower price of the precious metals.

"We expect sales of Rs 250-300 crore this Diwali season," he added. Explaining the buying trend Patel said that people were preferring coins, bars and lightweight jewellery this year for investment. "Compared to last year more people are going for gold coins and lightweight jewellery. This is also because the marriage season is a little late this year," he said.

Rajkot too saw big rush of people in jwellery stores. Rajkot Gold Dealers’ Association president Bhayabhai Sholiya said that in Rajkot city too they expected 15-20 per cent higher sales than last Diwali season. "Since last one month the sale have picked up significantly mainly due to lower prices of gold and silver compared to last year. People are also preferring traditional jewellers against branded jwellery this year," said Sholiya on the trend this season.

Haresh Soni of the All India Gem and Jewellery Trade Federation also expected higher sales this season. However, he declined to give expected sales figures in rupee terms.

Meanwhile, jewellery sales jumped at least by 30 per cent on the occasion of Dhanteras in the popular Zaveri Bazaar on Tuesday.

"Buyers were encouraged with stable gold prices. With the wedding season ensuing in the third week of November, consumers bought even wedding sets, coins and bars to meet future demand. The ongoing positive business sentiment alongwith lower commodities prices helped consumers’ bullish sentiment reach on the top. We estimate at least 30 per cent growth in sales today," Kumar Jain, managing director, Kumar Jain, Umedmal Tilokchand Zaveri.

While the traditional jewellery remained in focus this season, light weight and intrinsic design ornaments were primary flavours of consumers.

"The entire retail sector witnessed a slowdown between April - September. A positive sentiment set in Dussehra onwards which continued on the Occasion of Dhunterus. While we estimate a decent sale across all sectors - gold, platinum and diamond jewellery, gold remained a preferred choice of consumers. Urban consumers were extra bullish on gold assuming volatility in prices, sales growth from rural India was comparatively lower. We are estimating around 35 per cent growth in sales this Dhanterus which sets the mood of the rest of the festive and wedding season," said Vijay Jain, CEO, Orra brand jewellery.

Consumer sentiment was upbeat in Delhi as well. P C Jeweller’s Chief Executive Officer R K Sharma expects a bumper jewellery sale this festive season.

"The gold demand this Diwali mirrors the general optimism that has set in the economy, reinforcing the traditional faith in gold for the average household saver and the increased economic relevance of this asset class due to various uncertainties on the horizon. Policy restrictions have had little impact on demand for gold, though sources of supply have increasingly shifted to unauthorised channels. It is time for a long term approach to gold in India. As a nation we need to focus on measures that will unlock the potentially transformative value of the gold stored in millions of private households in order to fund the nation’s growth." Somasundaram PR, Managing Director, India, World Gold Council.