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The spurt in jewellery sales in the last few days, following the biggest single-day crash in gold prices on April 12, has left the display racks in many stores, usually choc-a-block with jewellery, looking bare.
On prodding, the ‘floor manager’ in one of the popular stores in Chennai, said: “We are expecting the stock to come only by early next week.”
Usually, Sundays are lean days for any jewellery retailer.
“But last Sunday, we sold close to 27 kg, which is at least four times the normal sales. If the trend continues, and we do not get supplies in the next week or so, we may well run out of stock,” said another retailer in Tamil Nadu, on the condition of anonymity.
According to jewellery retail chains, gold is in short supply in the market currently. It may take at least a week to replenish the shelves. “Though we placed orders, the metal is yet to reach our hands. The key authorised agents – Axis Bank, Nova Scotia Bank and State Bank of India – themselves have almost run out of stock and are awaiting consignments,” said Ba. Ramesh, Joint Managing Director of Thanga Mayil Jewellers.
Absence of recycling
Responding to a query, a senior official of Nova Scotia Bank told Business Line that there is “a little tightness” in the market, as there was a spurt in demand.
Many retailers placed bulk orders in the last one week, and “we expect fresh consignments to come only on Monday, as it would take time for the exporting country to complete the formalities and ship gold,” he explained.
Vishnu Dutt Sharma, proprietor of Kamadhenu Jewellers in the northern fringes of Chennai, attributes the tightness to the absence of gold recycling.
Since prices are falling, people are not keen on exchanging old jewellery for new. “They only want to buy new,” he said. Thanga Mayil’s Ramesh too, said though sales grew by over 25 per cent in the last few days, “not a single piece of jewellery came for exchange”.
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