Gold & Silver

Gold regains glitter this Diwali, finally

Suresh P. Iyengar Mumbai | Updated on October 31, 2021

The industry has imported 740 tonnes in the last nine months

After struggling for the last three years, jewellers are finally laughing all the way to the bank as the demand this festival is set to hit a new high with some of the jewellery manufacturers refusing to accept new orders.

Buyers, on the other hand, are now ready to splurge on their favourite jewellery this Dhanteras in view of stable gold prices and bullish economic sentiments.

Moreover, the pick-up in vaccination pace and a substantial drop in fresh Covid cases have led to relaxation of pandemic protocols. To meet the rising demand, the industry has imported 740 tonnes of gold in the last nine months of this year.

Higher footfalls, revenue

Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers said for the first time since March last year, all the showrooms will be fully operational this festival season and are already seeing higher footfalls and revenue.

The quarter ending December is one of the most important periods for the jewellery industry with the wedding season closely following the festival season.

Stable prices

Gold prices have fallen 7 per cent as of September-end to ₹42,635 per 10 gm against ₹45,640 in the same period last year. However, in line with the global trend and rising demand, prices have started firming to touch ₹47,975 per 10 gm on Friday against ₹46,435 on October 1.

Navneet Damani, VP-Commodities Research, Motilal Oswal Financial Services, said with the inflation overhang and possibility of interest rate hike, gold prices are expected to surge towards ₹52,000-53,000 over the next 12 months.

Somasundaram PR, Regional CEO (India), World Gold Council, said the sentiment at the recent buyer- seller meet has been so buoyant that a few of them even refused to accept fresh orders as their manufacturing capacity was completely booked.

Even as the equity market touched a new high, consumers are wary of valuation and looking at gold as an alternative option, he said.

Aditya Pethe, Director, WHP Jewellers, said the demand had picked up since Navaratri, but slowed down during pitru paksha (September 20-October 6) only to rebound since then.

Ishu Datwani, Director, Anmol Jewellers, said given the current trend, the industry expects sales to increase 15-20 per cent this festival season compared to the last two years.

Read also: Q3 gold demand up 47% as offtake revives and Covid restrictions ease

Published on October 30, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like