This year, the auspicious 'Dhanteras' has spelt 'Gold Rush' for gold, gems and jewellery traders with huge crowds thronging retail outlets for festive season purchases, industry players said on Friday
This year, the auspicious 'Dhanteras' has spelt 'Gold Rush' for gold, gems and jewellery traders with huge crowds thronging retail outlets for festive season purchases, industry players said on Friday.
"This is despite the fact that the gold prices are around Rs 30,450/10 gms (per tola) compared to Rs 25,450/10 gms on Dhanteras last year (2015)," said Mumbai Jewellers Association Vice President Surinder Kumar Jain.
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He said shops have been witnessing heavy crowds since the morning 'muhurat' between 9-11 a.m. and bigger sales are expected in the evening 'muhurat' of 7 p.m. to midnight Friday.
"As per current trends, we anticipate around 30 per cent increase in volumes sales compared to 2015, which is very encouraging considering the higher price of gold in 2016," Jain told IANS.
On customer preferences, he said buyers, especially women, prefer smaller items of jewellery like rings, nose-rings, earrings, small necklaces and tiny pendants, and other items in the Rs 15,000-Rs 25,000 range, compared to the larger ones like heavy neckwear, bangles or bracelets, which command minimum prices of Rs 35,000.
There is some sale of gold coins or smaller guineas among the spot buyers, but the main demand is for smaller jewellery items which can also be used for daily wear, said suburban Borivali retailer Pramila Jewellers' proprietor S.K. Verlekar.
Attributing reasons for the gilded sentiments this Diwali, Indian Bullion & Jewellers Association (IBJA) President Mukesh Mehta said that a good monsoon has led to an increase in rural purchasing power, while the hike in salaries of government employees also played its part, and after a lull of two quarters, gold becoming popular after Dassehra.
Mumbai Jewellers Federation President Rakesh Shetty estimated around 35 percent-plus increase in gold sales till 6 p.m., compared to last year and the figure could well touch 50 percent after the second 'muhurat' later Friday.
"Besides items of small jewellery, even coins are being picked up. Especially of 5 gms, either for gifting purposes, as investments, or for making jewellery items of choice at a later date. Coins have been picked up many manufacturers and corporates to be offered as 'free gift' to customers, clients or staffers," Shetty told IANS.
Commodities expert and veteran commentator Ibrahim Patel said that till 6 p.m., gold sales had gone up 40 percent compared to 2015.
"It must be noted that besides gold, there is also a significant demand for platinum jewellery studded with precious stones like diamonds among the aflfluent classes in urban centres. However, gold remains a timeless favourite among the rural and semi-rural areas," he said.
World Gold Council (India) Managing Director P. R. Somasundaram said that as widely expected, this Dhanteras has ushered in a new phase of optimism around gold, especially after an unusually difficult first half.
"Consumers who have been deferring gold purchases are back and the demand for gold jewellery and branded coins seems to be much better than last year's Diwali season," he said, attributing it to good monsoons and softening of gold prices which have had a definitive impact on the improved sentiment around this traditional asset class.
The upcoming wedding season appears promising both for the industry and consumers alike, he added.
Jain said the main marriage season is still six weeks away and the jewellers had carefully predicted the trend this year to stock smaller gold jewellery items which are picked up much.
The higher-than-anticipated customer response has spurred the main jewellery hubs in Mumbai to sport a festive ambience with Diwali lamps, lanterns, twinkling fairy lights and other decorations to attract the buyers.
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