Gold sales dip as diamond glitters on Dhanteras

A rise in the price of gold coupled with the new found love of diamonds, ensured that sale of gold on Dhanteras day, celebrated on Wednesday in the state, was a low key affair.

According to jewellers in the city, the sale of gold was less than half of the amount sold on Dhanteras last year even as Gujarat reports highest gold sales on this auspicious day.

According to an estimate by Gems and Jewelleries Export Promotion Council (GJEPC), Gujarat tops the chart in buying gold and jewellery on Dhanteras.

"More and more people are opting for diamond as the investment option. The easy availability of branded diamond jewelleries is also a reason for the significant dip in gold sales this time," said a member of GJEPC based in Surat.

"Till a year ago, there was a stigma about buying diamonds and branded diamond jewelleries. There was a common belief that all diamonds are priced much high," he added.

The GJEPC member, who is also a major diamond trader, said that with organisations such as Diamond Trading Corporation (DTC) reaching out to people through more and more ad campaigns, the attitude towards diamond has changed.

"Even the buy back price is assured. The return is always over 70 per cent in case of diamond. In gold, the resell price always fluctuate. It may even go below he purchase price. Like us, most of the retail diamond jewellery traders this year have witnessed a booming sales which is at least 50 per cent higher than the last year," said Shaunak Shastree, Business Development Manager of Kirti Ornaments Pvt Limited.

Kirti Ornaments makes Asmi and Nakshatra brands of diamond jewelleries, promoted by DTC. According to Shastree, sales of diamond as an instrument for investment has witnessed around 24 per cent rise this year.

Industry experts also said that the occurrence of 'Pushya Nakshatra' just a few days before Dhanteras has also contributed towards lower sales of gold on Dhanteras day this year.

Pushya Nakshatra, considered an auspicious day for purchasing gold and silver, was celebrated just a week before Dhanteras this year. Although jewellers in Ahmedabad are tight lipped regarding the actual sales on Dhanteras day in the city, they say that the sales this year is far below the sales of gold on Dhanteras day last year.

In fact, the traditional gold market at Manek Chowk area of Ahmedabad was not bustling with activity on Wednesday. There are about 500 big and small jewellers in the city.

A member of Ahmedabad Diamond Association said, "Sales of diamond jewellery from the top showrooms in Ahmedabad, Vadodara and Rajkot cities have been pegged to around Rs 800 crore in last seven days till Wednesday against sales of around Rs 450 crore reported during the corresponding period of the last year. Also there is belief among people that wearing diamond brings fortune and it is also prestigious."

"There has been a near 10 per cent rise in the price of gold over the past one year. Last Dhanteras, the price of ten gram of gold was around Rs 6,000 while it today is around Rs 6,500. Also, the craze for diamonds has been growing by the day and traditional heavy gold jewellery is not preferred now," said Girish Choksi, a prominent jeweller of Manek Chowk area.

Another jeweller said that with Pushya Nakshatra being celebrated less than a week before Dhanteras, the sale of gold got distributed between the two occasions.

"People who purchased gold or silver on Pushya Nakshatra on Thursday last, were not in a position to purchase gold again and hence the low sales on Dhanteras this year," he said.

Shanti Patel, President of Ahmedabad Jewellers Association agreed that sales were lower, but added that if the sales of both Pushya Nakshatra and Dhanteras were accounted for, the amount of gold sold will not be too low.

"Yes, the rise in prices definitely have been a dampener to some extent," he said. Patel added that the huge interest in diamonds is also a factor in gold sales being lower.