 "Jewellery sales up 15-20% this Dhanterus")
Gold jewellery sales are estimated to have jumped by 15-20 per cent on Monday, which was ‘Dhanteras’, considered a most auspicious occasion to buy.
What seems to have helped greatly was positive sentiment through falling prices over recent days. Consumers’ preference was for intrinsic designs and lightweight jewellery. Gold’s price fell about six per cent in two weeks, following positive economic and jobs data from the United States. Bullion is under a lot of pressure on a rising dollar index. Trading currently at $1,094 an oz in London, gold has slumped from $1,164.56 an oz on October 23. Moving in line, silver’s price fell 6.6 per cent in the same period, to $14.79 an oz.
In India, however, a strengthening rupee against the dollar marginally arrested the fall in gold. The metal fell four per cent in two weeks to trade now at Rs 26,100 per 10g, a sharp fall from Rs 27,085 per 10g. The fall over a year has been six per cent, from Rs 27,700 per 10g from last year’s Dhanteras.
“The Dhanterus set a positive trend for gold jewellery purchasers for the Diwali season with between 15-20 per cent growth in sales estimated this day,” said Rajiv Popley, Director, Popley Group, one of the largest jewellery retailers here.
A large section of customers bought very small quantities of jewellery to complete the formality of doing so on the day, in anticipation of further price falls. Those who had booked gold ornaments earlier for delivery on Monday also booked an additional quantity because of the price fall. Consequently, jewellery sales remained up on Monday, said Kumar Jain, Director, Umedmal Tilokchand Zaveri, a bullion dealer and jewellery retailer here. He estimates a 20 per cent growth in sales volume this Dhanteras from the same day last year. The government’s decision to launch alternative investment avenues to physical gold, such as bonds, have not impacted consumer sentiment by much. Physical gold purchase continued on Monday.
"A lot of spur-of-the-moment buying also happened this year," said Tanya Rastogi, Director, Lala Jugal Kishore Jewellers. Jewellery sales in Delhi, according to R K Sharma, chief executive at PC Jeweller, were more encouraging than anywhere else. As against the 15-20 per cent growth in jewellery sales elsewhere, PCJ says there was a 40-50 per cent spurt in sales. However gold import estimates don’t quite jell with what jewellers claim. Sudheesh Nambiath, lead analyst at GFMS, said: "In November so far, gold import is estimated at 15-17 tonnes, not impressive in view of the traditional Dhanteras and Diwali festival gold demand." However, government has cut tariff value for gold sharply which will trigger higher imports from now on.
What seems to have helped greatly was positive sentiment through falling prices over recent days. Consumers’ preference was for intrinsic designs and lightweight jewellery. Gold’s price fell about six per cent in two weeks, following positive economic and jobs data from the United States. Bullion is under a lot of pressure on a rising dollar index. Trading currently at $1,094 an oz in London, gold has slumped from $1,164.56 an oz on October 23. Moving in line, silver’s price fell 6.6 per cent in the same period, to $14.79 an oz.
In India, however, a strengthening rupee against the dollar marginally arrested the fall in gold. The metal fell four per cent in two weeks to trade now at Rs 26,100 per 10g, a sharp fall from Rs 27,085 per 10g. The fall over a year has been six per cent, from Rs 27,700 per 10g from last year’s Dhanteras.
“The Dhanterus set a positive trend for gold jewellery purchasers for the Diwali season with between 15-20 per cent growth in sales estimated this day,” said Rajiv Popley, Director, Popley Group, one of the largest jewellery retailers here.
A large section of customers bought very small quantities of jewellery to complete the formality of doing so on the day, in anticipation of further price falls. Those who had booked gold ornaments earlier for delivery on Monday also booked an additional quantity because of the price fall. Consequently, jewellery sales remained up on Monday, said Kumar Jain, Director, Umedmal Tilokchand Zaveri, a bullion dealer and jewellery retailer here. He estimates a 20 per cent growth in sales volume this Dhanteras from the same day last year. The government’s decision to launch alternative investment avenues to physical gold, such as bonds, have not impacted consumer sentiment by much. Physical gold purchase continued on Monday.
"A lot of spur-of-the-moment buying also happened this year," said Tanya Rastogi, Director, Lala Jugal Kishore Jewellers. Jewellery sales in Delhi, according to R K Sharma, chief executive at PC Jeweller, were more encouraging than anywhere else. As against the 15-20 per cent growth in jewellery sales elsewhere, PCJ says there was a 40-50 per cent spurt in sales. However gold import estimates don’t quite jell with what jewellers claim. Sudheesh Nambiath, lead analyst at GFMS, said: "In November so far, gold import is estimated at 15-17 tonnes, not impressive in view of the traditional Dhanteras and Diwali festival gold demand." However, government has cut tariff value for gold sharply which will trigger higher imports from now on.