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High gold prices are unlikely to check the demand and sales may rise up to 40 per cent on this ‘Dhanteras’, a day considered auspicious for gold-buying by the Hindus, say jewellers.
“We expect the sales to grow by 35-40 per cent this Dhanteras. The peak marriage season is immediately after Diwali,” Gitanjali Group Chairman and MD, Mehul Choksi, told PTI.
However, in volume terms the growth is expected to be just 10 per cent, as people will go more for light weight jewellery, he said, adding that demand for coins is very strong and has grown 35-40 per cent year-on-year.
Shree Ganesh Jewellery House Head-Marketing, Rahul Singh, said, “With rising prices, light weight jewellery is in demand. People are buying gold jewellery for the upcoming festive and the wedding seasons, anticipating future rise in price. The purchase of gold coins is growing rapidly.”
Gold price on the weekend was ruling at Rs 30,480 per 10 grams on MCX.
This festive season the demand will pick up because usually, as prices go up the demand rises, World Gold Council Director, Investment, Amresh Acharya, said. Discounts by jewellers would fuel the demand, he added.
Kumar Jain of Umedmal Tilokchand Zaveri said the slight weakness in price has increased the footfall. “If gold remains at the current price level, the jewellery sales will definitely surge as people are also buying for the marriage season,” he said.
Kotak Mahindra Bank Executive Vice-President Puneet Kapoor said last Diwali the bank sold 125 kg of gold coins.
“This year we are expecting at least 20 per cent growth,” he said, adding that uptake would mostly be for 5, 8 and 20 category.
“As an investment, the yellow metal continues to command long-term value, a tag for being a safe haven, hedge against inflation and asset allocation, etc,” he said.
Angel Broking’s head, commodities Naveen Mathur said the gold prices are likely to rule at around Rs 35,500-31,000 level during the festive season. “The demand will be there for jewellery as people realise that gold will not go back to the previous year’s level,” he added.
However, in volume the jewellery demand will be a bit muted as people have options such as coins, bars and electronic traded funds (ETFs), he added.
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