Mumbai: Gold sales are likely to be flat this Dhanteras, which is considered as an auspicious day to buy precious metals, due to weak economic environment and poor monsoon, jewellers said. Jewellers also expect demand to be more inclined towards investment related items like coins, bars after launch of three schemes by Prime Minister Narendra Modi last week. Dhanteras, which usually falls two days ahead of the Diwali festival, will be celebrated on Monday this year.
The business during this Dhanteras is likely to be “similar to last year or go up marginally”, Anmol Jewellers Founder Ishu Datwawani told PTI. “It has been a quieter year, where revenue has dropped. However, for the last two months we are witnessing a spike in sales, but in phases,” he said.
P N Gadgil Jewellers’ CMD Saurabh Gadgil said that compared to last year the market is not so buoyant but the weakness in gold prices will keep up some of the demand. “The demand this year will be inclined more towards investment related items like coins, bars among others than towards jewellery especially after the launch of the three gold schemes by the prime minister,” he added.
Jewellers said poor monsoon this year and weak economic environment may impact buying sentiment. The country witnessed deficit monsoon which has led to slowdown in rural demand, hitting the market sentiments. Datwawani said that volume wise gold will move more as the weak prices will support the demand, but when it comes to value diamond will do better.
MCX December gold contract last week traded as low as Rs 25,854 per 10 grams, while in international markets it was USD 1,087.60 an ounce. All India Gems and Jewellery Trade Federation (GJF) Chairman G V Sreedhar said jewellers are hoping that coming down of gold prices is likely to boost demand.
“The market is looking positive and we hope that the low gold rates will boost the demand. The demand is picking up slowly and we are expecting 15-20 per cent rise in demand from last year,” he added. World Gold Council Managing Director (India) Somasundaram PR said the demand has started picking up since last 10 days and the softening of prices will bring a positive boost to the industry and will overrule the hurdles like weak monsoon.
Moreover, the three schemes announced by the Prime Minister will create a positive environment in the market and establish gold as a fungible asset among consumer, he added. Narendra Modi last week launched three ambitious schemes – Gold Monetisation Scheme (GMS), Sovereign Gold Bonds Scheme and Indian gold coin and bullion – to reduce the physical demand for gold and fish out 20,000 tonne of the precious metal worth USD 800 billion lying idle with households.
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