Dhanteras gold sales expected to fall flat
Sales of gold and jewellery for the Dhanteras festival this year are predicted to have fallen flat due to lowered rural demand, the chairman of the All India Gem and Jewellery Domestic Council said on Tuesday.
Dhanteras, a time when gold jewellery is often given as a gift, is an important time for jewellery brands. However, as gold prices have remained high, most gold demand has been limited to lighter weight jewellery items.
Although Dhanteras should see gold sales pick up compared to previous months, this means little as it is usually a busy time. “Dhanteras sales this year is expected to be flat though it is better than the last few months when demand was muted,” Nitin Khandelwal, the chairman of the All India Gem and Jewellery Domestic Council, told ET Bureau. “Rural sales may not see a significant increase over last year as farmers are yet to get MSP.”
Saurabh Gadgil, the vice president of the India Bullion and Jewellery Association, told ET Bureau that “sales could go up by 5-10 per cent at the best,” comparing sales to 2017. This increase, however, is expected to come from more lightweight and therefore cheaper jewellery sales.
A total of 60 percent of India’s total annual gold consumption comes from rural India, according to ET Bureau. As many farmers have not managed to get minimum support prices for their crops yet this year, they had less purchasing power for the Dhanteras festival.
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