It is Dhanteras time again and Indians are ready to splurge on gold. The jewellers expect sales to be 15-20 percent higher Tuesday compared to last year due to better price of the yellow metal.
"We expect sales to be 20 percent higher this year compared to last year as gold price is ruling at a better level than last year," Rahul Gupta, chief executive officer, PP Jewellers told IANS.
Last year, there was supply crunch of gold in the market after government hiked its import duty to 15 percent to curb more import as that was causing imbalance in the current account deficit in the country.
"This year the price went below Rs.27,000 per 10 grams mark a fortnight back, but now there is price increment of Rs.1,000-Rs.1,200 per 10 grams," he added.
Gold price was hovering around Rs.27,600 per 10 grams in the national capital Tuesday.
"We expect sales to be good this Dhanteras as the price is good. During the last six-eight months silver sales were dim. So we expect sales to go up today (Tuesday)," Jayantilal Challani, president of Madras Jewellers and Diamond Merchants Association and a partner in Challani Jewellery Mart, told IANS.
"Normally silver sales will go up by more than 100 percent during Dhanteras as compared to normal day sales. People buy silver articles/bars/coins today (Tuesday). Generally north Indians buy silver on Dhanteras. During Akshaya Tritiya people buy gold and on Dhanteras silver is bought. Today silver price is Rs.41.40 per gram," Challani added.
Despite a steep fall in prices of gold as compared to last year, from around Rs.32,000 per 10 gms to around Rs.28,000 per 10 gms, this Dhanteras, market sentiment has been hit by overall inflation and higher interest rates, arresting sales, market leaders said in Mumbai.
"Owing to these factors, we expect at least a 35 percent drop in gold sales compared to 2013... although the current retail price in Mumbai is Rs.27,750," Mumbai Jewellers Federation President Rakesh Shetty told IANS.
However, other retails in Mumbai hope the buying may pick up as the main 'muhurat' is scheduled only after 7 p.m. Tuesday evening.
P.R. Somasundaram, managing director, World Gold Council (India), said that gold demand on Dhanteras Tuesday mirrors the general optimism in the economy, reinforcing the traditional faith in gold for the average household save and its increased economic relevance due to various uncertainties on the horizon.
"Policy restrictions have had little impact on gold demand, though sources of supply have increasingly shifted to unauthorized channels... It is time for a long-term approach to gold in India, unlock the potentially transformative value of the household gold to fund the nation's growth," Somasundaram said.
