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The stabilising of gold prices at lower levels in both the domestic and international markets has advanced both seasonal and festive jewellery demand by over a month. The price is at a four-year low, stabilising around Rs 25,000 per 10g in the home market, after it fell below $1,100 an oz in London trade. Gold jewellery demand here, show daily average sales, has jumped 40-50 per cent in recent days.
“When the price fell sharply on July 18, there was a rush of customers for about a week. Later, footfalls declined, probably due to volatility in prices. Jewellery consumers perhaps awaited a further fall in gold prices and deferred their buying. But, in the past four-five days, jewellery demand jumped sharply on stabilising prices,” said Sandeep Kulhalli, vice-president (retail & marketing), Tanishq. Tanishq has seen a rise of 25-30 per cent in sales over the past five days.
Jewellery consumers, in fact, have a double benefit as jewellers, assuming it would be a lean season after the forecast of a marginally deficient monsoon, announced heavy discounts in making charges. Wo, customers are taking advantage of both, the price fall and discount, said Kumar Jain, Director, Umedmal Tilokchand Zaveri, a Zaveri Bazaar–based bullion dealer and jewellery retailer. “Not only retail consumers but occasional buyers have also booked bullion and ornaments."
