Jewellers eye windfall as gold price falls and demand surges
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With gold prices tumbling to a 15-month low today, retailers are witnessing a surge in demand and expect up to 50 per cent spike in sales volume in this marriage season.
They are also expecting prices to fall further to around Rs 25,000 per 10 grams in the immediate short-term.
"Over the weekend, demand has picked up and there is surge in footfalls. As such, demand for jewellery has been up since Holi due to the upcoming wedding season. However, the recent plunge in prices have added to the momentum.
"We are expecting a whopping 50 per cent growth in sales volume during this season over the same period last year," Vice-Chairman of the Mumbai Jewellers Association Kumar Jain said.
Jain, who also owns Umedmal Tilokchand Zaveri retail chain, said jewellers are expecting a good season on the back of expectations that the prices are likely to tumble further to around Rs 25,000 due to global cues.
Prices in Mumbai Spot market today was ruling at Rs 26,550 per 10 grams compared to Rs 28,410 in the same period last year.
Echoing a similar view, Delhi-based PCJ Jewellers Managing Director Balrram Garg said the demand for jewellery has grown during the last two-three days as gold prices started declining.
"We are expecting 30-40 per cent sales growth, both in value as well as volume terms, during this season," he said, adding that the prices may decline by another 2-3 per cent.
Tribhovandas Bhimji Zaveri Chief Executive Prem Hinduja said there has been a positive change in the attitude of buyers with growing footfalls in all stores.
"Historically, we have always seen that whenever there has been a decline in gold prices, jewellery demand has increased even during the inauspicious periods. And the present trend is not different. However, it is too early to give any figures," he added.