This Dhanteras, jewellers expect a big sales surge
MUMBAI: Gold prices stayed firm as stronger physical demand for the precious metal, ahead of Dhanteras on Friday, offset a steady US dollar.
On Wednesday, gold prices surged by ₹215 to ₹30,715 per 10 grams. Silver, too, jumped ₹100 to ₹43,000 per kg on increased off-take by coin makers and other consuming industries.
Gems and jewellery retailers are expecting around 25% growth in sales during Dhanteras, considered auspicious for buying the precious metal, compared to the last year due to good monsoon and pent-up consumer demand, experts said.
“Market sentiment is looking up and prices have stabilised. Good monsoon and pent-up demand will boost sales. We expect 20% to 25% overall growth in sales this year,” All India Gems and Jewellery Trade Federation chairman Sreedhar GV said.
The season started well and the general mood is very good, so seeing this positive trend we are expecting 25% to 35% growth from last year, Gitanjali Gems chairman and MD Mehul Choksi said. “Good monsoon will aid this growth and we are expecting ₹30,000-35,000 ticket size to move more this year. The last couple of years were very bad for the industry and this year the sector is going to benefit from this pent-up demand.”
There is a lot of positive demand in the market and the jewellery consumer is back after the disastrous first half, which was affected due to the strike by jewellers against the imposition of 1% excise duty, World Gold Council India MD Somasundaram PR said.
Flows into exchangetraded funds and a pick-up in Asian demand were keeping the metal stable overseas, said Dominic Schnider of UBS Wealth Management in Hong Kong. “Markets having priced in the Fed’s interest rate hike move. Yellen may hike rates now, but the trajectory is going to be modest, and so interest rates in the US will actually go down.”