'Dhanteras' boost jewellers' business, pent-up demand accelerates off-take

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SME Times News Bureau | 02 Nov, 2021
Pent-up demand, along with reasonable prices and healthy monsoons, boosted gold sales on the auspicious occasion of Dhanteras.

The upcoming wedding season also provided a boost to the precious metal's sales.

The festival marks the first day of Diwali celebrations.

On this day, Goddess of wealth, Goddess Lakshmi, is worshipped, and it is important to purchase items of value like ornaments, gemstones, and any household appliance, made of metal, including automobiles.

All India Gem and Jewellery Domestic Council Chairman Ashish Pethe said: "This year, gold sales are expected 15-20 per cent above pre-pandemic levels (2019)."

The India Bullion and Jewellers Association (IBJA) said that sale of gold on Dhanteras across the country this year was about 50 tonnes, valued at over Rs 20,000 crore.

IBJA's data showed that the average price of gold of 24-carat purity (999 purity) on Tuesday was over Rs 49,000 per 10 grams (with GST) which was lower than last year's price of around Rs 55,000 per 10 grams (with GST).

"There has been a tremendous demand for gold this Dhanteras, as buyers have regained their confidence in gold. It seems that buyers have increased the share of gold in their investment portfolios," IBJA's national Secretary Surendra Mehta told IANS.

"Furthermore, the mandatory hallmarking as well as digital gold for gifting purposes have also boosted sales. We also saw a younger customer base this year."

As per IBJA, in Dhanteras 2021, gold sales are expected to be around Rs 20,000 crore, while it was Rs 12,000 crore in 2019.

"Gold has always been integral to festivals and celebrations in India, particularly so during Dhanteras and Diwali. We expect this Dhanteras and Diwali to be one of the best in recent years even when benchmarked to pre-Covid seasons," World Gold Council's Regional CEO, India, Somasundaram P.R., said.

"Millions attribute great fortune to any investment in gold during Dhanteras. Anecdotal feedback from the jewellery retailers reflect this sentiment strongly this season."

Jewellers across the country echoed similar sentiments

Uttar Pradesh-based Aisshpra Gems & Jewels Director Vaibhav Saraf said: "We had already achieved 40 per cent targets by 2 p.m., and compared to last years' Dhanteras, we are on track to grow by 30 per cent in terms of sales across all outlets."

"Our Lucknow outlet to our Balia outlet, including our Gorakhpur stores are overwhelmed with footfalls since morning and it is heartwarming to see such great enthusiasm amongst people after so long."

Mumbai-based Anmol Jewellers' founder Ishu Datwani said: "The build-up has been pretty good today since morning - and we have been seeing a steady stream of clients. The good thing is that all the walk-ins are genuine buyers and not window shoppers."

"This is a new shift in the trend that we have seen in the last two years th at only consumers with buying intentions are walking into the store and window shoppers have drastically reduced. I am pretty confident we will end with a minimum of 15-20 per cent increase over last year's figures before Covid."

Gujarat and Mumbai-based Pooja Diamonds Director Shrey Mehta said: "Since the last 2 months, we are seeing pre-bookings and an increase in footfall. Today, a lot of people are here to collect deliveries and also make the customary purchase of Dhanteras and are gearing up for the wedding season."

"We have seen a growth in sales by 30 per cent compared to pre-Covid Dhanteras of 2019 which is a very positive sign."

Tanya Rastogi, Director, Lala Jugal Kishore Jewellers & IBJA, Uttar Pradesh, said: "The specific demographic of 25 to 35 years, for which our industry used to compete with the latest gadgets like the new iPhone or Smart TV, they are adventuring into daily, work-wear jewellery instead as they too have learned the value of holding gold as a safe haven asset."

"Sales of smaller items like rings, bangles, chains, and earrings are more than full sets. There is a lot of movement after a long time and also the gold rate has been supported."