 "Dhanteras jewellery sales climb 30-50%")
Gold sales jumped 30-50% on Dhanteras as the metal’s price stabilised below its peak.
Retailers witnessed a surge in demand for coins and ornaments with PC Jeweller and Gitanjali Gems expecting 85% business from this segment. Token demand for coins and bars fed the sales growth.
Gold prices are now around 16% higher than last Diwali. However, prices have moderated in the recent past. Estimates of October gold imports climbing to 65 tonnes and the market returning to a marginal premium after two quarters of discounts reflect a rise in jewellery demand this Diwali season.
Dhanteras sets the trend for jewellery sales in the ensuing wedding season that begins a fortnight after Diwali. A good monsoon has helped raise rural demand for gold, which holds the key to the season’s sales.
“The trade estimates a 30-50% growth in jewellery sales this Dhanteras. Consumers who have been deferring gold purchases are back and demand for jewellery and coins is higher,” said Somasundaram PR, managing director, India, World Gold Council.
After hitting Rs 31,480 per 10 gm in August and again in September, gold moderated to Rs 29,995 per 10 gm on Friday, a decline of 5 per cent from its recent peak. The price of gold declined by Rs 65 per 10 gm on Friday.
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"The trend indicates a 50 per cent rise in sales. Our online sales almost doubled during Dhanteras, indicating the season's sales will grow 35-40 per cent," said Mehul Choksi, managing director, Gitanjali Gems.
Online jewellery sales grew 100 per cent this Dhanteras as e-commerce companies offered discounts. Apart from selling on its own platform, jewelsouk.com, Gitanjali Gems sells gold jewellery and coins on Snapdeal and Amazon.
PC Jeweller is expecting a 25-30 per cent growth in offline and online sales, according to its chief operating officer RK Sharma.
“We are seeing green shoots in consumer spending. While the run-up to Diwali has been slower than anticipated, footfalls today have been very good and we expect Dhanteras sales to be 10-15 per cent higher than last year,” said Vijay Jain, chief executive officer and director, ORRA, which caters to the upmarket jewellery segment.