The stabilizing of gold prices at lower levels in both the domestic and international markets has advanced both seasonal and festive jewelery demand by over a month. The price is at a four-year low, stabilising around Rs 25,000 per 10g in the home market, after it fell below $1,100 an oz in London trade. Gold jewellery demand here, show daily average sales, has jumped 40-50 per cent in recent days.
“When the price fell sharply on July 18, there was a rush of customers for about a week. Later, footfalls declined, probably due to volatility in prices. Jewellery consumers perhaps awaited a further fall in gold prices and deferred their buying. But, in the past four-five days, jewellery demand jumped sharply on stabilising prices,” said Sandeep Kulhalli, vice-president (retail & marketing), Tanishq. Tanishq has seen a rise of 25-30 per cent in sales over the past five days.
Jewelery consumers, in fact, have a double benefit as jewellers, assuming it would be a lean season after the forecast of a marginally deficient monsoon, announced heavy discounts in making charges. Wo, customers are taking advantage of both, the price fall and discount, said Kumar Jain, Director, Umedmal Tilokchand Zaveri, a Zaveri Bazaar–based bullion dealer and jewellery retailer. “Not only retail consumers but occasional buyers have also booked bullion and ornaments.”
Gold was at a four-year low on Tuesday of Rs 24,950 per 10g, a decline of Rs 150 from Monday and 3.75 per cent less since the decline started on July 18. In international markets, the price is down 3.5 per cent since July 18, to trade currently at $1,094 an oz. “Demand has risen after a quiet season in June and part of July. End-season sale offers, coupled with price fall, helped raise demand. The coming festive season is expected to be much better in terms of sales than expected earlier,” said Mehul Choksi, chairman, Gitanjali Gems