KOLKATA, Oct 23:Jewellers are pinning hope on
Diwali for a revival in demand, though they are expecting that
the sales may fall by 20-40 per cent over last year’s festive
business.
Rise in gold prices by 30 per cent in the last 3-4
months, higher import duty and economic slowdown have led to a
subdued sentiment among consumers in the season of pre-Diwali
sales, they said.
“We are hopeful of a surge in demand for jewellery
ahead of Diwali and in the ongoing festive season. We are
expecting a sequential growth of 30-40 per cent from the
previous months,” Senco Gold and Diamonds Executive Director
Suvankar Sen told PTI.
Compared to previous year’s Dhanteras and Diwali
season, the sales are “expected to be lower by 40 per cent
this time”, a trade body official said on condition of
anonymity.
Dhanteras is considered to be an auspicious day for
buying gold, silver and other valuables and is largely
celebrated in northern and western parts of India.
Jewellers started witnessing a positive sentiment
among consumers in the last few days.
A city store official of Tribhovandas Bhimji Zaveri
agreed that sales will likely be lower during this Diwali but
there was a “traction in demand in the last 2-3 days” and
almost all organised jewellers are “offering discounts to push
sales”.
This year, Dhanteras will be celebrated on Friday
while Diwali is on Sunday.
“An overall wait-and-watch consumer sentiment,
underpinned by life time high gold prices in rupee term, has
been reported across regions. The recent softness in price has
infused a sense of volatility in price movements that has not
helped,” World Gold Council MD India, Somasundaram PR said.
He said months of July and August saw imports dipping
by 60 per cent of last years figures indicating weak trade
sentiment.
“Gold continues to be at a significant discount on
account of muted demand and an active grey market, impacting
organised manufacturers, refiners and jewellers,” he said.
Another trade expert Mehul Parekh said this festive
season business will “at least be lower by 20 per cent”.
According to stock brokers, a trend to go for gold
ETFs has also been gaining popularity as it offers quick
liquidity and does not involve any making charge. (PTI)
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