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Jewellers upbeat as gold sales shoot up in festive season

Jewellers upbeat as gold sales shoot up in festive season
PTI
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First Published: Sun, Nov 02 2008. 09 35 AM IST
Updated: Sun, Nov 02 2008. 09 36 AM IST
Mumbai: Jewellers are upbeat and looking forward to the year ending on a positive note following gold regaining its lustre business-wise during the Diwali week.
“Diwali commenced on a very affirmative note and witnessed a record breaking sale on Dhanteras which has not been witnessed in the last seven years. The 47% decline in business that was witnessed in the first six months of this year has already been compensated during the festive season,” The All India Gems and Jewellery Trade Federation’s Chairman, Ashok Minawala, said.
“About five to six tonnes must have been sold on Dhanteras day itself,” Minawala said, adding that in the last 25 days about 60 tonnes of the metal is estimated to have been sold.
“Jewellers are upbeat and are now looking forward to the year ending on a positive note. Prices shall be in the same range unless the dollar weakens, which gives the consumer the best opportunity for the forthcoming wedding season,” Minawala said.
Standard gold (99.5 purity) was quoted at Rs11,795 per 10 grams, while pure gold (99.9 purity) was quoting at Rs11,860 in the Mumbai bullion market on Saturday.
In the international market, gold bullion lost 17% in October, its biggest decline since February 1983, when it finished the month 18.2% lower.
Bullion is down 12% this year, well below the record high of $1,030.80 an ounce struck in March.
Gold sales figure has seen an overall increase of 125% during the festive season compared to last year.
This is good news for the jewellers who are witnessing some brisk business during the festive season as consumers are keen to encash on the dip in prices.
Gold has seen a renewed focus in terms of investment from consumers who see it as a more secure investment.
“The gold rush was a combined result of the festival of Diwali and lower prices which have resulted in a shortage of gold bars. A physical shortage of gold is happening worldwide”, gold analyst, Amit Zaveri, said.
“Gold has offered double digit (11 to 12%) returns in the current decade when all other asset classes are turning into the red,” Minawala said.
“October alone has seen a sale of gold and precious stones to the extent of Rs11,000 crore. This year has witnessed growth tremendously in semi-urban and rural regions as compared to urban regions. Around 35% of the sales are from coins and bars,” bullion expert, Dinesh Jain, said.
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First Published: Sun, Nov 02 2008. 09 35 AM IST