Gold jewellery sales rise 30% during Dhanteras

After a slow first half, which was hit by over a month-long strike, jewellers are a happy lot this Dhanteras.

After a slow first half, which was hit by over a month-long strike, jewellers are a happy lot this Dhanteras.

After a slow first half, which was hit by over a month-long strike, jewellers are a happy lot this Dhanteras.(Parveen Kumar/Hindustan Times)

“Sales are up 30% this year, compared to the previous year, which is better than our expectations. This will be one of the best Diwali in the last of couple of years,” said Saurabh Gadgil, chairman, PN Gadgil Jewellers.

Around 25% of the sales are in bars and coins and the rest in gold and diamond jewellery, he added.

“We have seen sales really pick up in the last couple of weeks. But more people are buying jewellery and purchase of bullion and coins is generally on the decline,” said Aditya Pethe, director, Waman Hari Pethe Jewellers.

Discounts, including 25% to 50% reduction in jewellery making charges and gifts on jewellery purchases were also on offer.

The rise in sales comes at a time when gold prices have seen some correction in the recent months. Prices of the yellow metal touched R32,500 per 10 grams in July this year, tracking global markets, as the uncertain economic environment drove investors to gold as a safe-haven asset. Domestically, prices have been trading at around R30,600 per 10 grams in the bullion market on Friday, a 16% to 17% increase compared to Diwali last year.

“There is a lot of pent up demand this Diwali after a challenging first half and the range-bound correction in prices has also helped boost sales. Footfalls at jewellers are up to 50% this year, which will translate into significant sales growth over last Diwali,” said Somasundaram PR, managing director, World Gold Council India.