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Dhanteras witnesses good sale; No impact of note ban, GST
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SME Times News Bureau | 18 Oct, 2017
Come Dhanteras, and the hunger for gold, so visible among Indians, has
helped them tide over the impact of demonetisation and the Goods and
Services Tax (GST), as customers thronged jewellery stores on Tuesday.
"We
have witnessed very good footfall. Demand for jewellery is definitely
higher this year than investment demand," Balram Garg, Managing
Director, P.C. Jewellers, told IANS in Delhi, adding "We expect sales to
go up by 30 per cent on pent up demand due to various regulatory
issues".
Price of 24 carat gold in the national capital was hovering around Rs 30,000 per 10 grams on Tuesday.
'Dhan'
in Hindi means wealth, and 'Terah' means number 13. Dhanteras,
accordingly, means, the 13th Day of the Krishna Paksha in the month of
Ashwin in Indian Lunar Calendar, which in Hindu tradition is devoted to
wealth.
Many seek to buy gold, silver and utensils and invoke
the gods to bring in prosperity. In several parts of the country, people
also worship the Goddess of Wealth -- Lakshmi.
Echoing similar
upbeat sentiments as Delhi, Jayantilal Challani, President of Madras
Jewellers and Diamond Merchants Association and a partner in Challani
Jewellery Mart, told IANS: "The demand for gold and silver is good.
First Dhanteras post-GST regime and also demonetisation and income
disclosure scheme issues has settled down. The footfalls in the stores
are good."
"During the last six-to-eight months, sales were a bit
dull. But for the past few days, the demand is good. The prices have
also come down. Today the price of gold is around Rs.2,837 per gram in
Chennai," Challani added.
The Centre's recent decision to not
make mandatory furnishing of PAN or Aadhaar card details for buying
jewellery in cash up to Rs 200,000 had also ushered in a positive
sentiment among buyers. The earlier limit was Rs 50,000 as part of the
anti-money laundering (AML) guidelines.
"Gold price remains
stable and range-bound in the run-up-to the festivals at around Rs 3,000
per gram, which is a positive factor. Footfalls in retail stores have
been good since morning. However, compared to last year, sales growth
would be tepid," Pankaj Parekh, Chairman of India Bullion and Jewellers
Association, Regional (East), told IANS in Kolkata.
Gold is at
the centre of festivities and gifting traditions in India, particularly
during Dhanteras, Diwali and the wedding season that follows.
"Currently,
gold demand seems to be recovering after withdrawal of the AML
guidelines. Policy reforms in quick succession in recent years have
targeted transparency and the industry is transitioning under GST to a
more organised structure, with long term benefits," said Somasundaram
P.R., Managing Director, India, at World Gold Council.
"It
appears that demand for gold jewellery and branded coins seems to be
better than the past quarter, particularly in relation to organised
players. A good monsoon and stable gold prices are definitely
encouraging consumers to make token purchases for the auspicious
festivals. The ensuing wedding season, however, holds the key for the
quarterly demand performance," he added.
In Mumbai, All India
Gems & Jewellery Federation Chairman Nitin Khandelwal said that with
AML issues having been amicably resolved, buyers' sentiments have been
boosted.
"Though the footballs are increasing, we do not expect
any growth over last year's sales. We shall be happy even if last year's
sales/quantity figures are achieved, coming after demonetisation, GST
and RERA (Real Estate Regulatory Authority)," Khandelwal told IANS.
However,
the demand for gold jewellery for the Diwali festival in Bengaluru
remained subdued because of negative sentiment and regulatory issues.
Continuous rains for several days may also have done their bit to dampen
enthusiasm for buying gold.
"Though GST is not an issue as the
rate is only 3 per cent on gold and jewellery, customers are wary of
buying, as PAN card is mandatory if the bill is more than Rs 2 lakh,"
Bengaluru Jewellers' Association President Y.S. Ravikumar said.
"Owing
to less purchasing power among the upper and middle classes, demand for
gold or jewellery has not picked up since demonetisation on November 8
last year," he added.
Also with continuous rains in the city over
the last fortnight, footfalls in retail gold shops or showrooms across
the place have been 40 per cent less than they were last year.
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