Early trend shows about 50% rise in jewellery sales on Dhanteras

Gold prices have risen 16% over last Diwali, with imports estimated to have doubled over the past few monts

Goddess Laxmi has been very kind on jewellers this Dhanteras as jewellery sales dominated by gold jewellery, diamond and silver have seen an over 50 per cent growth early in the day.

Compared to last Diwali, gold prices are around 16 per cent hgher this time. but in the near past, they were high initially and moderated from there. The estimate of gold imports doubling from past few months' average to around 65 tonnes is also reflecting the rising demand this Diwali.

Even the market, which was at a discount, has turned into marginal premium making import viable. According to NCDEX data, the average premium yesterday was $1 an ounce.

 

Technology-driven sales and online sales together indicate an over 100% growth this Dhanteras. Although the share of online in overall sales is not big, this year that segment has earned some traction, with a few e-commerce sites offering huge discounts.

"Since the day has just begun for physical buyers, early trends indicate 50 per cent growth in sales on stabilising prices albeit on highs and estimates of further rise in prices. Our online sales have almost doubled so far in the day, indicating that the entire season sales are likely to grow 35-40 per cent," said Mehul Choksi, Managing Director, Gitanjali Gems.

Apart from selling through its own online venture, Jewelsouk.com, Gitanjali also sales jewellery and coins made of precious metals through Snapdeal and Amazon websites to name a few. The company sales physical jewellery through nearly 3,000 points of sale (POS) too.

Gitanjali also sells jewellery made of an alloy of precious metals that it claims is cheaper than individual precious metals. Diamond-studded jewellery is also getting traction this year.

Echoing a similar response, Prithviraj Kothari, Managing Director, said, "Overall sales are robust on Dhanteras, with an estimated rise of 35-40 per cent. "Overall sales during the festive week ending the Bhaubeej, however, are estimated to remain weak compared with last year," he added.

The trend in jewellery sales on the Diwali week assumes significance as this sets the sentiment for the entire wedding season.

According to Tanya Rstogi, director IBJA and a director, Lala Jugarram jewelers, from UP, "according to lunar calendar, demand resumed yesterday and within jewellery and coins we see larger preference for jewellery than coins as past two quarters were weak for gold demand while this time in past few weeks prices have moderated. As a result suppressed demand has started coming in with good show in rural areas due to higher farm income."

The Diwali week contributes nearly 15-20 per cent of India's overall gold demand of over 900 tonnes.