New Delhi- Jewellers are cautiously optimistic about gold demand on the Dhanteras day on Friday and expect a 10 per cent increase in gold jewellery and bullion sales amid a sharp rise in gold prices in view of geopolitical developments.
Gold prices have shot up by more than 20 per cent since last Dhanteras to nearly Rs 61,000 per ten grams. Gold prices in Delhi were ruling at Rs 50,139 per ten grams, excluding taxes, on last year’s Dhanteras, while at Rs 47,644 on 2021 Dhanteras festival.
Dhanteras is regarded as the most auspicious occasion in the Hindu calendar for buying items like precious metals, utensils and other valuables. Many people also buy vehicles. In normal years, about 20-30 tonnes of gold is sold on a Dhanteras day.
“There is an 8-10 per cent annual rise in gold prices. And people have accepted the base price of gold at Rs 58,000 per ten grams. We are expecting 10 per cent increase in sales volume this Dhanteras from over the last year,” All India Gems and Jewellery Domestic Council Chairman Saiyam Mehra told PTI.
Consumers have pre-booked for delivery on Dhanteras day taking advantage of discounts in making charges offered by several jewellers, he said.
However, World Gold Council (WGC) India Regional CEO Somasundaram PR said, “Jewellers are cautiously optimistic although consumer sentiments remain positive. The high price of gold will be a significant dampener on Dhanteras.”.
There will be a token buying and huge demand for bars and coins. Total Dhanteras sales are unlikely to see the level achieved in 2021 and 2022, he said.
Whereas jewellery retailer Joyalukkas, which has 100 stores in India, is expecting a 25 per cent increase in gold jewellery sales this time.
“We are expecting about 650 kg of sale of gold jewellery this Dhanteras across our stores. If prices soften then the sales might be even more,” Joyalukkas Chairman and Managing Director Joy Alukkas said.
The company, which is preparing for an IPO, had sold about 500 kg of gold during the last Dhanteras, he added.
Upbeat about sales, Kalyan Jewellers Executive Director Ramesh Kalyanaraman said, “We have been witnessing strong demand momentum and footfalls across our showrooms.”
While, the industry witnessed a delay in demand due to the extended Shraadh period, as compared to FY’23, the renewed surge in sales momentum post this, has instilled optimism in the company’s future outlook, he said.
Apart from the new and seasonal line of jewellery, in keeping with the Dhanteras spirit, the company has released a unique edition of ‘Ashta Lakshmi’ and ‘Ashta Vinayak’ coins, in both 22-carat and 24-carat, with flexibility in product weight.
“The booking-based advanced purchases have been showcasing signs of positive consumer sentiment. We are confident that the demand momentum will continue to further accelerate till the end of the year,” he added.
Bachharaj Bamalwa, partner of Kolkata-based jewellery chain Nemichand Bamalwa & Sons, said price will be a factor for buying on this Dhanteras.
“We started offers two weeks before Dhanteras and footfalls have been good. Most of them will take delivery on Dhanteras day tomorrow.”
“Although gold rates have gone up 10 per cent from over last year, we expect sales to increase by only 10 per cent in volume wise and 20 per cent in value terms,” he added.
On bullion demand, MMTC-PAMP Managing Director and CEO Vikas Singh said Dhanteras and Diwali occasions witness families embracing age-old customs of purchasing gold, as an investment and a cherished ritual.
“We anticipate robust demand during this festive season,” he said and added the company sells purest 999.9+ (24 carat) gold and silver products. (PTI)