There is nothing like the big Indian festival season to push up sales of precious metals.
There is nothing like the big Indian festival season to push up sales of precious metals. Gold prices have shot up by about 24 per cent since the beginning of this year, and maintained significantly higher prices compared to the same time last year, despite what seemed to be a cooling down of prices.
Gold prices held steady at Rs 31,200 for 10 gm on Monday, after falling over the weekend, even though silver fell marginally to Rs 45,450 per kg.
Jewellers have laid out plans to feed the pent-up demand for gold by foregoing a part of their margins on making charges in the hope of getting more and more buyers.
The movement of gold prices holds the key to sales this time as customers are waiting for price corrections to make purchases. “In rupee terms there should be growth in sales revenues. But if the volumes have to move up, there should be some dip in prices,” said Bachhraj Bamalwa, past chairman, All India Gems and Jewellery Trade Federation.
Rising gold prices were one big factor that curbed demand in the previous quarters. They had risen by 30 per cent to the yearly high levels in July before cooling down. Still, gold prices are 16 per cent up from the level seen during same time last year.
Traders and market analysts believe a pent-up demand in the market can boost sales. For the past three quarters, both demand and fresh imports were significantly low compared to last year.
Data from GFMS show that the country officially imported 270 tonnes of gold between January and September.
