Chennai: Dussehra sales had disappointed the jeweler fraternity. However, they hope to see the latent demand for gold to support Dhanteras sales this time.
Gold demand has remained subdued for previous festivals, where Dussehra sales were 20 per cent lower than previous year, finds Motilal Oswal Financial Services. Customers have been keeping away from the market for the past four months as the prices were rising. Prices had come closer to Rs 40,000 per 10 gm levels in the domestic market amidst rising international rates and weakening rupee. However of late, there has been some stability in the market and jewellers expect that customers will make use of the stability.
“The prices have reduced a bit and the customers now understand that prices may not fall further much. There is a latent demand in the market and we have started seeing sales picking up slowly since Navarathri. Jewell-ers are seeing an increasing trend in pre-festival bookings. We expect 10 to 12 per cent growth in sales during this Diwali,” said Bachhraj Bamalwa, former chairman of All-India Gem & Jewellery Domestic Council (GJC). Wedding purchases too have started picking up.