 "Scrap jewellery sales dip 50-60% in a month")
Scrap jewellery sales fell 50-60 per cent in the past month, on expectations of higher return in the coming festive season. Normally, farmers sell their extra holding of gold jewellery with the onset of monsoon rain, to buy seeds and fertiliser. Hence, these sales increase in June and July, continuing in September if rain is deficient.
These sales also move up if the price of gold is bullish. Recycling of old jewellery meets nearly a tenth of the country’s annual gold demand of 850-950 tonnes. Data from the World Gold Council showed collection through recycling of scrap jewellery at 23.6 tonnes in April-June, the highest in four quarters.
Since then, the forecast is for surplus rain and the gold price has fluctuated in a wide range.
“Consumers have exhausted their saleable quantity. Whatever they needed to sell for price benefit or need-based encashment is over. Now, the buying time has started,” said Rajesh Mehta, MD, Rajesh Exports, an entity with 70-odd retail stores across the country. The festive season started with Raksha Bandhan and the Ganapati festival is almost over. After the ‘shraddh’ period would come Dussehra and Diwali.
“Consumer demand for gold jewellery is likely to be better in the festive season this year,” said Mehul Choksi, MD, Gitanjali Gems. Gold import rose last month.
Kothari believes gold prices would determine jewellery demand. It was around ~30,000 per 10g in June and is now ~31,100 per 10g, with a discount equivalent to ~400 per 10g.Scrap jewellery sales dip 50-60% in a month
DILIP KUMAR JHA
Mumbai, 15 September
Scrap jewellery sales fell 50-60 per cent in the past month, on expectations of higher return in the coming festive season. Normally, farmers sell their extra holding of gold jewellery with the onset of monsoon rain, to buy seeds and fertiliser. Hence, these sales increase in June and July, continuing in September if rain is deficient.
These sales also move up if the price of gold is bullish. Recycling of old jewellery meets nearly a tenth of the country’s annual gold demand of 850-950 tonnes. Data from the World Gold Council showed collection through recycling of scrap jewellery at 23.6 tonnes in April-June, the highest in four quarters.
Since then, the forecast is for surplus rain and the gold price has fluctuated in a wide range.
“Need-based selling of scrap jewellery is over. Common consumers purchase with surplus funds and sell in case of need. These sales have come down by more than half in the past two-three weeks,” said Prithviraj Kothari, managing director (MD), RiddiSiddhi Bullions.
“Consumers have exhausted their saleable quantity. Whatever they needed to sell for price benefit or need-based encashment is over. Now, the buying time has started,” said Rajesh Mehta, MD, Rajesh Exports, an entity with 70-odd retail stores across the country. The festive season started with Raksha Bandhan and the Ganapati festival is almost over. After the ‘shraddh’ period would come Dussehra and Diwali.
“Consumer demand for gold jewellery is likely to be better in the festive season this year,” said Mehul Choksi, MD, Gitanjali Gems. Gold import rose last month.
Kothari believes gold prices would determine jewellery demand. It was around Rs 30,000 per 10g in June and is now Rs 31,100 per 10g, with a discount equivalent to Rs 400 per 10g.
These sales also move up if the price of gold is bullish. Recycling of old jewellery meets nearly a tenth of the country’s annual gold demand of 850-950 tonnes. Data from the World Gold Council showed collection through recycling of scrap jewellery at 23.6 tonnes in April-June, the highest in four quarters.
Since then, the forecast is for surplus rain and the gold price has fluctuated in a wide range.
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“Need-based selling of scrap jewellery is over. Common consumers purchase with surplus funds and sell in case of need. These sales have come down by more than half in the past two-three weeks,” said Prithviraj Kothari, managing director (MD), RiddiSiddhi Bullions.
“Consumers have exhausted their saleable quantity. Whatever they needed to sell for price benefit or need-based encashment is over. Now, the buying time has started,” said Rajesh Mehta, MD, Rajesh Exports, an entity with 70-odd retail stores across the country. The festive season started with Raksha Bandhan and the Ganapati festival is almost over. After the ‘shraddh’ period would come Dussehra and Diwali.
“Consumer demand for gold jewellery is likely to be better in the festive season this year,” said Mehul Choksi, MD, Gitanjali Gems. Gold import rose last month.
Kothari believes gold prices would determine jewellery demand. It was around ~30,000 per 10g in June and is now ~31,100 per 10g, with a discount equivalent to ~400 per 10g.Scrap jewellery sales dip 50-60% in a month
DILIP KUMAR JHA
Mumbai, 15 September
Scrap jewellery sales fell 50-60 per cent in the past month, on expectations of higher return in the coming festive season. Normally, farmers sell their extra holding of gold jewellery with the onset of monsoon rain, to buy seeds and fertiliser. Hence, these sales increase in June and July, continuing in September if rain is deficient.
These sales also move up if the price of gold is bullish. Recycling of old jewellery meets nearly a tenth of the country’s annual gold demand of 850-950 tonnes. Data from the World Gold Council showed collection through recycling of scrap jewellery at 23.6 tonnes in April-June, the highest in four quarters.
Since then, the forecast is for surplus rain and the gold price has fluctuated in a wide range.
“Need-based selling of scrap jewellery is over. Common consumers purchase with surplus funds and sell in case of need. These sales have come down by more than half in the past two-three weeks,” said Prithviraj Kothari, managing director (MD), RiddiSiddhi Bullions.
“Consumers have exhausted their saleable quantity. Whatever they needed to sell for price benefit or need-based encashment is over. Now, the buying time has started,” said Rajesh Mehta, MD, Rajesh Exports, an entity with 70-odd retail stores across the country. The festive season started with Raksha Bandhan and the Ganapati festival is almost over. After the ‘shraddh’ period would come Dussehra and Diwali.
“Consumer demand for gold jewellery is likely to be better in the festive season this year,” said Mehul Choksi, MD, Gitanjali Gems. Gold import rose last month.
Kothari believes gold prices would determine jewellery demand. It was around Rs 30,000 per 10g in June and is now Rs 31,100 per 10g, with a discount equivalent to Rs 400 per 10g.
| Gold recovery through scrap jewellery | |
| Quarter ended | Quantity (tonnes) |
| Jun ‘13 | 10 |
| Sept ‘13 | 53 |
| Dec ‘13 | 17 |
| Mar ‘14 | 30 |
| Jun ‘14 | 22.5 |
| Sept ‘14 | 17.5 |
| Dec ‘14 | 22.5 |
| Mar ‘15 | 18 |
| Jun ‘15 | 24 |
| Sept ‘15 | 18.2 |
| Dec ‘15 | 20 |
| Mar ‘16 | 14 |
| Jun ‘16 | 23.6 |
| Source : GFMS, Thomson Reuters, World Gold Council | |