Gold jewellers breathe easy
It has been a festive bonus this Diwali for gold jewellery sales that had slumped all through the early part of the year due to the high price of the yellow metal.
By Deepa Krishnan, TNN |
MUMBAI: It has been a festive bonus this Diwali for gold jewellery sales that had slumped all through the early part of the year due to the high price of the yellow metal.
Sales have picked up in the last three weeks beginning with Navaratri, and industry estimates the offtake is 25-30% higher over last year’s.
Mehul Choksi, chairman, Gitanjali Group, says: “The sales, which were very dull all through the year, have picked up in this period. Many holidays and occasions that came up during these last few weeks have spurred the sales.”
However, a note of caution still rings. While the sales may be up, many consumers have shifted focus to diamonds, which have also appreciated in value, though not as sharply as gold. This indicates that while gold jewellery sales could be flat, or up by 10-20%, diamond jewellery sales have helped push up the numbers.
Chintamani Kaigaonkar, MD of the Mumbai-based Chintamani Jewellers, said: “Sales have been up on festival days like Dhanteras, when it’s auspicious to buy gold.” However, he said, “In between these auspicious days, the sales have been subdued compared to previous years.”
The import of gold is also up by over 100% from last year. Prithviraj Kothari, director of Riddhi Siddhi Bullions said: “In the last one month over 150 tonnes of gold was imported into the country compared to about 50-60 tonnes last year.”
According to World Gold Council (WGC) data, in the previous quarter (between July-September), sales volume of gold fell 24% from last year, and jewellery demand slumped 43% due to exorbitant prices.
During these months it traded in a range of Rs 8,600 and Rs 10,000 per 10 gm. However, a rise in income levels, as well as more availability of products, have led to keeping the demand for gold buoyant.
Sales have picked up in the last three weeks beginning with Navaratri, and industry estimates the offtake is 25-30% higher over last year’s.
Mehul Choksi, chairman, Gitanjali Group, says: “The sales, which were very dull all through the year, have picked up in this period. Many holidays and occasions that came up during these last few weeks have spurred the sales.”
However, a note of caution still rings. While the sales may be up, many consumers have shifted focus to diamonds, which have also appreciated in value, though not as sharply as gold. This indicates that while gold jewellery sales could be flat, or up by 10-20%, diamond jewellery sales have helped push up the numbers.
Chintamani Kaigaonkar, MD of the Mumbai-based Chintamani Jewellers, said: “Sales have been up on festival days like Dhanteras, when it’s auspicious to buy gold.” However, he said, “In between these auspicious days, the sales have been subdued compared to previous years.”
The import of gold is also up by over 100% from last year. Prithviraj Kothari, director of Riddhi Siddhi Bullions said: “In the last one month over 150 tonnes of gold was imported into the country compared to about 50-60 tonnes last year.”
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India is the largest consumer of jewellery in the world. Gold import touched 800 tonnes last year. According to World Gold Council (WGC) data, in the previous quarter (between July-September), sales volume of gold fell 24% from last year, and jewellery demand slumped 43% due to exorbitant prices.
During these months it traded in a range of Rs 8,600 and Rs 10,000 per 10 gm. However, a rise in income levels, as well as more availability of products, have led to keeping the demand for gold buoyant.
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