Mumbai, October 18: Jewellers across India saw no spark in sales this Diwali as gold and silver demand subdued this festive season primarily due to a weak global sentiment. Reports state that gold sales fell by 30% compared with the 2016 festival season. It has been noticed that consumer purchases were higher than those recorded during Navratri and Dussehra late last month. Various discounts and freebies announced by jewellery owners failed to lure buyers. However, sales of diamond jewellery increased in the past three weeks at the expense of gold a shift in demand jewellers described as the “new normal“, a report by Economic Times said. The demand of gold and silver jewellery sales remained flat this Dhanteras amid sluggish demand from consumers despite relaxation in KYC norms for purchase, even as people fancied automobiles and electronic items, according to industry players. Also Read - Coronavirus Fear: Gold Logs All-time High of Rs 43,590
In futures trading at Multi-Commodity Exchange (MCX), gold for delivery in December too was down by Rs 104, or 0.35 per cent at Rs 29,750 per ten gram on Dhanteras. Indian Bullion Jewellers Association Chairman and PNG Jewellers Managing Director Saurabh Gadgil was quoted by PTI saying, “Footfalls increasing with every hour…The sales growth should be 5-10 per cent more than last year”. Meanwhile, World Gold Council India Managing Director Somasundaram PR said that it appears that demand for gold jewellery and branded coins seems to be better than the past quarter particularly in relation to organised players. “A good monsoon and stable gold prices are definitely encouraging consumers to make token purchases for the auspicious festival. The ensuing wedding season, however, holds the key for the quarterly demand performance,” he said in a statement. Also Read - Is it Ram's Return Gift or Modi's $5 Trillion Economy? Twitter Makes Fun After Gold Found in Sonbhadra
According to a report in Economic Times, Jewellers from Gujarat and Delhi said that the gold off-take has dropped by 30%-40%, while the demand for the yellow metal in Maharashtra and eastern India said demand rose by up to 15%. Things that were in demand during this Dhanteras were lightweight jewellery, silver idols, and coins of lower denomination. Also Read - 3,000 Tonnes Gold Reserve Found in Sonbhadra, Five Times India's Current Reserve
Dhanteras is considered to be an auspicious day for buying gold, silver and other valuables. Major gold players in the market like P C Jewellers, Kalyan, Talwar Sons and Jewellers are hoping to see a 10-35 per cent jump in sales in the coming days. In India, unorganised players make up for roughly 70 per cent of the country’s gold sales.