Gold retailers look at festive season for pick-up in sales
Weak equity markets and the upcoming festive season have led gold retailers forecast good business in the coming weeks. Organisors of ‘Jewels of India’, a retail jewellery exhibition to be held in Bangalore are expecting to sell nearly 30 per cent of their showcased products.
The exhibition, to be held between October 18 and 21, has participation from nearly 110 retailers across the country. Nearly Rs 150 crore worth of jewellery of different styles would be displayed in the exhibition.
“With gold prices bouncing back on the bullion market, we expect people to prefer gold as a safe investment option over the stock market. The interest among customers is expected to be high this year as they can buy gold for the festive season and also as a long-term investment,” said Sandeep Bekal, CEO, Expoworld, organisor of the exhibition.
Retailers admit that the season has been sluggish so far. A stronger rupee against the dollar has affected gold as most of India’s metal is imported and paid for in the US currency.
However, they believe the yellow metal will emerge a steadier investment in the long run.
“The volatility in the markets and prices of gold last week which was at an all-time high kept investors on the watch. But we believe the festive season will turn things around,” said P V Mahesh, president of the Bangalore Jewellers Association.
India imports around 800 tonnes of gold a year, accounting for 20 percent of the world gold consumption.
Retailers say that the total consumption of gold this year would most likely not be able to match last year’s figure.