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Gold glitters on Dhanteras despite high prices; sales up 15 pc

Press Trust of India  |  New Delhi 

Gold and sales are expected to have gone up by up to 15 per cent on the auspicious occasion of 'Dhanteras' Monday as consumer demand revived on reports of further jump in the in the coming weeks.

The buying during the morning trade remained subdued, but it picked up later as eager shoppers indulged in token buying, while some took delivery of their wedding There was more demand for coins compared to

Even organised players like and are expected to have seen better sales as quality and better designs at competitive prices attracted more footfalls.

Unorganised jewellery players in -- the world's second biggest buyer of the -- make up for roughly 70 per cent of the country's gold sales.

is considered to be an auspicious day for buying gold, silver and other valuables and is largely celebrated in northern and western parts of The buying continues till late night.

"Consumer demand has revived on reports of further increase in gold rates up to Rs 35,000-40,000 per ten gram in the coming weeks due to weak rupee. We estimate sales to be higher by up to 10 per cent than the year-ago," All Gem and Jewellery Domestic Council (GJC)

Gold prices are ruling high at Rs 32,690 per 10 gram Monday in the national capital as against Rs 30,710 per 10 gram on the day in 2017.

"Anecdotal feedback from the industry suggests that though footfalls seems to be good, demand could be moderate," (WGC) India Managing Somasundaram PR said.

Among organised players, Managing said, "We are seeing 10 per cent growth in volumes and 15-18 per cent in value terms compared to last "

There was demand for both gold and diamond jewellery at its 95 stores spread across the country, he added.

Kerala-based and Managing TS Kalyanaraman said, "We have seen positive momentum this Dhanteras and are expecting 8-9 per cent increase in revenue over last year based on early data."

The key contributors for this increase is the steady shift of clientele from unorganised to organised players like Kalyan, he said. The jewellers operates 100 stores in India.

"We are seeing growth all across our stores. Footfalls are gaining momentum from late afternoon. We are expecting better sales and a healthy double digit growth," Senior (retail and marketing jewellery division) said.

As gold prices are ruling high, the demand is more for small to medium size jewellery, especially finger rings, earrings, bangles among others, he added.

Echoing a similar trend, Director said that the company has met the expected sale target with 10-20 per cent growth in footfall, while Anmol Jewellers founder said he sees 15-20 per cent jump in sales on the Dhanteras day.

Stating that there was surge in gold and silver coins despite liquidity crunch and high prices, Director said the company sees its coin sales to double this time from 75,000 pieces sold in the year-ago.

The city-based said the company has got into the bullion business this year and sold 20 kg of silver coins Monday. The sales were better than expectations.

(IBJA) and said: "We are expecting 10-12 per cent growth in gold and jewellery sales in volume terms and 25 per cent jump in diamond jewellery sales."

Appreciating gold price is also prompting costumers to opt for gold, he added.

However, gold refiner said that market was subdued as there was a general reluctance to enter the market. "Much of our demand for coins is from corporate this time."

Ideally, gold rates should have been around Rs 30,000 per ten grams, but the prices are ruling over Rs 32,000 per ten gram because of rupee depreciation.

"The market is not able to adjust the increase of Rs 2,000 per ten gram," he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 05 2018. 19:40 IST