New Delhi: Jewelers are cautious but optimistic about gold demand on Dhanteras on Friday. Amid a sharp rise in gold prices in view of geopolitical developments, they expect a 10 percent growth in sales of gold jewelery and bullion. Since Dhanteras last year, gold prices have risen by more than 20 percent to Rs 61,000 per ten gram. On Dhanteras last year, the price of gold in Delhi was Rs 50,139 per ten grams excluding tax, while it was Rs 47,644 on the 2021 Dhanteras festival.
In the Hindu calendar, Dhanteras is considered auspicious for buying precious metals, utensils and other valuables. Many people also buy vehicles on this day. In normal years around 20-30 tonnes of gold is sold on Dhanteras day. All India Gems and Jewelery Domestic Council Chairman Sanyam Mehra told PTI, “Gold prices are increasing by 8-10 per cent annually. And people have accepted the base price of gold at Rs 58,000 per ten grams. We expect a 10 percent growth in sales this Dhanteras over last year.
He said customers have booked for delivery on Dhanteras, taking advantage of the discount in charges offered by many jewellers. However, Somasundaram PR, Regional Chief Executive Officer (CEO) for India, World Gold Council (WGC), said, “Jewelers are cautiously optimistic despite positive consumer sentiment. High gold prices will be a significant constraint on Dhanteras.
There will be symbolic buying and there will be a huge demand for gold bars and coins. He said overall Dhanteras sales are unlikely to reach the levels achieved in 2021 and 2022. While Joyalukkas, a jewelery retailer with 100 stores in India, expects a 25 per cent growth in gold jewelery sales this time.
Joy Alukkas, Chairman and Managing Director, Joyalukkas said, “We expect to sell around 650 kg of gold jewelery in our stores this Dhanteras. If the prices come down, sales may also increase.” He said the company, which is preparing for an initial public offering (IPO), had sold around 500 kg of gold on Dhanteras last year.
“We are seeing strong demand and footfall in our showrooms,” said Ramesh Kalyanaraman, executive director of Kalyan Jewellers, which has seen a boom in sales. The demand was delayed. After this, the company is somewhat optimistic about a renewed surge in sales.
Apart from a new and seasonal range of jewelery in keeping with Dhanteras, the company has launched unique editions of ‘Ashta Lakshmi’ and ‘Ashta Vinayaka’ coins in both 22 carat and 24 carat with flexibility in product weight.
Bachraj Bamawala, partner at Kolkata-based jewelery chain Nemichand Bamawala & Sons, said price is a factor when it comes to shopping this Dhanteras. He said, “We started the offers two weeks before Dhanteras and the customer footfall has been good. Most of them will be delivered tomorrow on Dhanteras.
“Although gold prices have increased by 10 per cent compared to last year, we expect sales to increase by only 10 per cent in volume terms and 20 per cent in value terms,” he said. On Demand Boolean, MMTC-PAMP. Vikas Singh, Managing Director and CEO said that on the occasion of Dhanteras and Diwali, families adopt the age-old custom of buying gold as an investment and sacred ritual. “We expect strong demand this festive season,” he said, adding that the company sells the purest 999.9 plus (24 carat) gold and silver products.
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