Gold Silver Reports – Gold demand remained subdued this Dhanteras, with overall sales falling by 30% compared with the 2016 festival season, but consumer purchases were higher than those recorded during Navratri and Dussehra late last month.
Discounts to offset the impact of higher prices after GST rollout failed to lure buyers at the last minute, but sales of diamond jewellery increased in the past three weeks at the expense of gold a shift in demand jewellers described as the “new normal“.
- 1 Jewellers from Gujarat and Delhi, the two major markets, said off-take has dropped by 30%-40%, while their counterparts in Maharashtra and eastern India said demand rose by up to 15%. Lightweight jewellery , silver idols, and coins of lower denomination were in demand this Dhanteras. Gold prices dropped by `190 per 10 gm indicating that demand is not in tandem with supply.
- 2 Dhanteras Gold Sales Fall 30% | Neal Bhai Reports | Gold Silver Reports
Jewellers from Gujarat and Delhi, the two major markets, said off-take has dropped by 30%-40%, while their counterparts in Maharashtra and eastern India said demand rose by up to 15%. Lightweight jewellery , silver idols, and coins of lower denomination were in demand this Dhanteras. Gold prices dropped by `190 per 10 gm indicating that demand is not in tandem with supply.
“The situation was pretty disturbing in the preDiwali period beginning from Navratri. The sentiment has turned positive today with footfalls increasing since morning,“ said Nitin Khandelwal, chairman, All India Gem & Jewellery Trade Federation (GJF). “Initial reports trickling in show that there is a drop in demand by 20%-30% as high-value purchase is lower. But trade should understand that it is the `new normal.’ The sentiment has turned positive and that will result in good sales in the upcom ing wedding season.“
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The World Gold Council (WGC), which has pegged 2017 gold demand in the range of 650-750 tonnes, said that sales of gold jewellery and branded coins by organised players appear to have improved this quarter. “A good monsoon and stable gold prices are definitely encouraging consumers to make token purchases for the auspicious festival,“ said Somasundaram PR, managing director (India), WGC.
Jewellers from Maharashtra reported a 10%-15% rise in demand. “We saw a 10-15 % rise in sales and observed that young consumers are opting for light weight diamond jewellery ,“ said Aditya Pethe, director, WHP Jewellers.
Saurabh Gadgil, managing director of Pune based PNG Jewellers, said that outlets run by the company reported “good demand for coins and jewellery .“
In the price-sensitive eastern Indian market, demand is up by 5% -10%. “The situation has improved and we are expecting the market sentiment to remain positive in the coming days,“ said Suvankar Sen, executive director, Senco Gold & Diamonds.
