Gold shines as sales grow 10 per cent, says GJC

New Delhi: Gold and jewellery sales glittered on ‘Dhanteras’ on Monday as consumer bought the precious yellow metal on reports of further jump in its price in the coming weeks due to a weak Rupee.

“The sale of gold today has picked up and we are expecting an increase of 10 per cent during this ‘Dhanteras’. In the last two-three days we were pessimistic as enquiries were down but today sale has been better than our expectation,” said All India Gem and Jewellery Domestic Council (GJC) chairman Nitin Khandelwal.

He said that consumer demand has revived on reports of further increase in gold rates up to Rs 35,000-40,000 per ten gram in the coming weeks due to weakness in rupee.

Dhanteras is considered to be an auspicious day for buying gold, silver and other valuables.

Gold price was around Rs 32,690 per 10 gram on Monday in the national capital as against Rs 30,710 per 10 gram on the Dhanteras day in 2017.

“We have seen positive momentum this Dhanteras, and we are expecting an 8 per cent to 9 per cent increase in revenue over last year based on early data that we have received. The key contributors for this increase is the steady shift of clientele from unorganised to organised players,” said T. S. Kalyanaraman, CMD, Kalyan Jewellers.

P.C. Jewellers MD Balram Garg said that the company witnessed 10 per cent growth in volumes and 15-18 per cent in value terms compared to last Dhanteras. “There was demand for both gold and diamond jewellery,” added Mr Garg.

“We are seeing growth all across our stores. Footfalls are gaining momentum from late afternoon. We are expecting better sales and a healthy double digit growth,” Titan company senior VP (retail and marketing jewellery division) Sandeep Khulhalli said.

Besides gold and jewellery, people also prefer to buy utensils, kitchenware and appliances on Dhanteras.

However, Confederation of All India Traders, association of small traders in the country said that ‘Dhanteras’ failed to bring festive spirits in retail markets and there was low turnout of customers.

“It is most disappointed Dhanteras for the traders in past more than 10 years. It is feared that if situation goes like this in remaining two days of Diwali,  this slowdown may reach to 40 per cent in comparison to last year,”  said CAIT, secretary general, Praveen Khandelwal.

He blamed cash crunch  which has disturbed sales atmosphere in the markets. “The atmosphere of uncertainty has prompted the salaried class to keep funds reserve which has blocked the cash liquidity from the markets,” added Mr Khandelwal.