Indian Bullion and Jewellers Association estimates suggest 40 tonne gold was sold on Dhanteras day this year against 30 tonne last year Photo: Kamlesh Pednekar
Gold buyers were out in good numbers on Friday at Mumbai’s Zaveri Bazaar, the most well-known jewellery hub in the country, adding sparkle to Dhanteras.
The mood was upbeat across most major cities on the biggest gold buying occasion, after Akshaya Tritiya. Despite the pandemic, jewellers
estimated the day’s sales had crossed the previous Dhanteras
The fall in gold price in the past one week and also from the peak in August contributed to the rush, according to industry watchers. This follows a near washout during the last marriage season and Akshaya Tritiya because of the lockdown. With prices down, the festive season demand for gold is expected to continue beyond Diwali and into the upcoming marriage season.
While gold buyers got 21 per cent returns in last Samvat (2075), it’s been more than 31 per cent in Samvat 2076. This is despite the recent correction. The last time gold delivered such high returns was in Samvat 2067, gaining as much as 36 per cent.
“Consumers have been looking to bring in auspiciousness to their lives while shopping in stores with high safety standards. We have seen consequently a good dhanteras.
The drop in gold rates over the past few days has also helped,” said Arun Narayan, vice- president, retail & marketing, Tanishq.
Surendra Mehta, national secretary, Indian Bullion and Jewellers
Association (IBJA), too, said the sales were good across the country. Besides fall in gold price, there were other factors, too, in making Dhanteras a success. Demand was accumulating over the past seven to eight months as consumers were not moving out even after three months of lockdown, Mehta said. “That scare has now softened. The two-day spread of Dhanteras is also helping higher volumes.”
The bullion association estimates suggest about 30 tonne of gold was sold last year on the Dhanteras day. It’s risen to 38-40 tonne this time — a 33 per cent rise. A trend that came out clearly was that jewellery was the preferred mode of gold compared to coins.
In the past one week, gold has fallen by nearly 4 per cent. From the August peak, prices are down as much as 10 per cent. However, expectations of gold remaining bullish remain intact.
For many months, investors had to be content with buying gold in paper form. Between April and October, over 22 tonne worth of the metal was purchased in sovereign gold bonds form. After losing this business, jewellers
have been making all out efforts to attract consumers. Even incentives were offered.
Tanya Rastogi, director, Lala Jugal Kishore Jewellers in Lucknow, said: “Though people are apprehensive because of Covid-19, they have been coming in for jewellery. We are expecting 80 per cent increase in sales on a year-on-year basis.”
Chirag Sheth, principal consultant, India and South Asia at London headquartered bullion research and market information firm Metal Focus, said: “If the price remains at least around the current levels, the demand momentum is expected to continue.”