Consumers are back to buying gold, say jewellers

Demand for gold and diamond jewellery and other gold products is expected be quite robust during the ongoing festival and wedding season as consumers who have deferred purchases for a while are stepping up buying, jewellers and bullion dealers said.

Jewellers often witness the year’s highest sales during Dhanteras and Diwali. This year Dhanteras, an auspicious day for purchase of precious metals, falls on November11 followed by Diwali on November 13.

According to jewellers, enquiries for purchases on Dhanteras are quite good this year. Typically, consumers make enquiries ahead of Dhanteras to avoid rush.

Consumers have already commenced buying as they had put purchases of gold jewellery and coins on hold for most part of this year because of record high prices, low liquidity and uncertainty in the country’s economic scenario.

With prices ruling steady, they have renewed their purchases. This has prompted jewellers to stock up gold jewellery products.

To provide further traction to the on-going sales, jewellers are also offering discounts and other freebies.

Tanishq offered free gold coins with jewellery purchases made during Karva Chauth that got over on Friday. Most jewellers are offering free non-jewellery gifts with large purchases.

Entice Jewellery is running a wedding jewellery festival titled Wedding Orchid at its stores in Delhi, Jaipur and Mumbai, said its director Jitender Jain.

Discounts on purchases of gold coins are also being offered.

The World Gold Council has joined hands with India Post to launch a gold coin promotion for Diwali. The council has tied up with India Post and Reliance Money Infrastructure Ltd to offer 7 per cent discount on purchase of gold coins from India Post offices across India. This scheme is open till December-end.

Some banks are also offering discounts on gold coins.

“We are getting a lot of enquiries for gold coins and there have been advance booking orders for gold coins,” said Mr Rahul Singh, marketing head, Shree Ganesh Jewellery House.

He said that investment in gold coins has increased 45 per cent this festive season as consumers consider it as safe investment.

Diamond jewellery is also seeing robust sales.

This time around order booking for Dhanteras and Diwali is quite robust, according to Mr Dinesh Jain, managing director, P.M. Jewellers.

Mr Rajiv Popley, director of Popley & Sons, said that sales are good as consumers are convinced about the confidence of gold purchases.

Buyers are looking for investment in plain gold jewellery, which is the trend this season, he said.

The marginal improvement in equity markets has provided the initial boost to buying.

Jewellery sales started to pick up towards the end of September and all through October indicating a good Diwali season, jewellers said.

COMMENT NOW