Jewellers stare at subdued Diwali sales as gold prices turn prohibitive

Traders fear a drop of as much as 50% in sales over the previous season; tepid imports also point to poor offtake this time around

Jewellers are staring at subdued Diwali sales this season, with customers unlikely to spend on gold ornaments due to prohibitive prices of the metal. Early signs of tepid festival sales were evident in the poor offtake on Dussehra.

In private discussions yesterday, some jewellers admitted to drop in sales of about 50-80 per cent from last year's Dussehra. This demand depression in world’s second largest consuming country also points to dismal Diwali sales, as prices are showing no signs of retreating.

The price of gold in Mumbai's wholesale market at Zaveri Bazar today was Rs 38,200 per 10 grams for