Gold Sales Average on ‘Dhanteras’ in Mumbai

Mumbai: Keeping in tune with expectations, gold sales on dhanteras having notched a sharp fall of 40 percent this year compared to 2017 Diwali owing to high prices and overall negative market sentiments, a leading retailers body said on Monday. “Though there are crowds, people are not buying as per the expectations, but merely making token purchases of 5-10-20 gm to mark the auspicious day. Mostly gold coins/guineas are moving while small, medium or big articles of jewellery are virtually ignored,” said Mumbai Jewellers Federation President Rakesh Shetty.

However, another industry body, the All India Gem & Jewellery Domestic Council (GJC), said that contrary to expectations, gold and jewellery sales have zoomed during ‘dhanteras’ and the positive trend was expected to continue till the upcoming winter wedding season. “The past three days have surprised even the industry. People are literally out in droves in shops and showrooms to make gold purchases. For two months, till last Saturday, the market situation was extremely gloomy,” said GJC President Nitin Khandelwal. However, this time the purchases - mostly in small pieces of jewellery of 10 gm (1 tola) or multiples - is for end-user purposes and not as investments, with the prospects of gold prices shooting up with the likely increase in US dollar rates soon. “Our expectation is that USD may touch around Rs 85 in the near future given the current international scenario. Along with that, gold itself would shoot up to Rs 45,000 per tola (10 gm). Plus, the upcoming winter marriage season is also driving up the sales,” Khandelwal said. (IANS)

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