The rising prices have proved to be a deterrent this festive season. And the slowdown has hit the gold rush. While the demand for Gold rises during Dhanteras, where it is customary to purchase precious metal, inflation has dampened the market this time around.
None of the heavier stuff is there. Nobody is buying 50gms or 100gms of gold. People are going in for smaller rings, earrings, pendants, or maximum 10gms gold coin. The quantity as such has come down. With a sea of difference in prices between this year and last year, the demand has been hit, said Tushar Deb, a Delhi based Jeweler.
The subdued demand has prompted many jewelers to come out with schemes and offers to lure customers during the festive season. And while retailers worry the sales haven’t met previous years’ benchmark, customers seem eager to invest in gold, as financial security.
“It’s always a good investment to buy gold. It doesn’t get depreciated…” says veteran buyer Shilpi Gupta.
And it’s not only the jewellery industry that seems to be facing a few hurdles, the consumer durables sector isn’t faring too well either. With little or no promotional schemes on offer from the companies’ side and with demand slowing down this festive season, Shop owners like Manish, who owns a home appliance store in Delhi, are introducing attractive offers to hike sales.
“Usually people buy during the festive time because companies give deals and offers; but this time the company hasn’t given any offers and schemes, neither to customers nor to dealers. As a result we are giving promotional schemes, giving watches to known customers” says Manish.