The last quarter of the year marks festive and wedding season for the country and usually sees a spike in gold and silver sales. For the September quarter, the gold demand in India rose by 19 percent to 183.2 tonne compared to last year.
With gold prices soaring at Rs 32,690 per 10 grams this Dhanteras, compared to a price of Rs 30,710 per 10 grams in 2017, we take a look at how this has impacted the sale of gold jewellery this Diwali.
SMBStory visited Chandni Chowk’s Dariba Bazar, known for its wholesale jewellery market, in Delhi, to know about the trend of sales this festive season.
Jewellers unanimously claimed that the gold sale, compared to the festive season in the past years, has lost its sheen. “Even though the market appears vivid with thousands of people shopping for the festive season, the sales have been from low to moderate so far,” says Vijay Kumar of Vijay Jewels.
According to the traders, factors like weak rupee and lack of liquid cash in the market have slowed the demand. A leading retailers’ body told IANS that the gold sales this Diwali are down by 40 percent.
To boost the demand, retailers feel that the 14 percent difference between the international gold prices and domestic rates should be reduced. “A 10 percent import duty, three percent GST and two percent banks’ transaction costs over and above the gold price have impacted the demand significantly in the recent years,” says Padam Jain of Neel Padam Jewels.
(Video: Mohit Sabharwa)