Jewellers expecting strong demand during Dhanteras on softer gold prices

Jewellers expecting strong demand during Dhanteras on softer gold prices

With Indian market already on the robust recovery path, the are expecting strong Diwali sales in the Dhanteras as the festive mood remains high with low Covid third wave possibility and softer gold price this season.

The industry expects the trends in 2021 will be able to reach pre-covid level sales of 2019 on the back of gold price hovering at Rs 46,000-47,000 per 22 carat 10 grams gold nearly 5 per cent lower than 2020, and jump in number of weddings, a senior official of an industry body said.

“Since Navratri market is showing demand. It will continue on Dhanteras also. This year the festive mood is strong with the pandemic remaining under control, lower gold prices and strong wedding season. This year October-November months will account for 40 per cent of yearly sales,” All India Gems and Domestic Council chairman Ashish Pethe told PTI.

The national apex body of the gems and industry expects that in 2021, the industry will be able to revert back to pre-covid pandemic year of 2019. However, gold price rules nearly 20 per cent higher over 2019 levels.

“Sales are expected to get back to pre-Covid levels, with an increase of 15-20 per cent from last year. This year’s jewellery buying trend has been about living life large. After two years of mental anxiety and challenges, customers want to spend and invest in jewellery for happiness and asset building,” Senco Gold and Diamonds Ltd CEO Suvenkar Sen said.

World Gold Council India managing director Somasundaram PR said, “We expect this quarter to be one of the best in recent years, benchmarked to pre-covid seasons. Pent up demand, soft prices and good monsoons, combined with easing of lockdown across regions, bodes well for a strong surge in demand.”

The demand for gold in India jumped 47 per cent year-on-year (YoY) to 139.1 tonne as compared to 94.6 tonnes in the year ago period, higher than 2019, the World Gold Council said.

Gold jewellery demand in India during the JulySeptember 2021 period surged 58 per cent YoY to 96.2 tonne due to strong pent-up demand. The demand for gold in India has bounced back sharply from the lows seen during the Covid pandemic in 2020.

E-commerce sales craze is expected to be lower than 2020 as panic of infection has subsided and light jewellery will be transacted online.

“We expect five per cent of our sales happening online. Light jewellery will be sold online while heavy ones will be from stores,” Sen said.

During Dhanteras digital gold and investment through Exchange Traded Funds have gained momentum. Indian gold ETFs continue to net inflows worth taking year-to-date flows to USD 433 million. While global gold backed ETFs saw net outflow in September.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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