Weddings keep gold imports up by 188%

AHMEDABAD: A wedding season buzzing with auspicious muhurats and many ceremonies throughout February kept demand for gold jewellery upbeat.

With demand driven by this, gold imports into Gujarat stood at 5.5 metric tonnes (MT) in February, up 188% against January’s figure of 1.91 MT. Imports, however, remained flat against last February. The price of gold was Rs 57,800 per 10g in the Ahmedabad market on Saturday.

Despite the high prices, demand has been high due to the wedding season. “A lot of weddings were held in February and jewellery is usually bought just ahead of the occasion. Demand remained exceptionally good. When the price touched Rs 60,000, about 60% of purchases were made through exchange of old gold for fresh jewellery,” said Manoj Soni, a member of the Jewellers’ Association of Ahmedabad (JAA).

Jewellers and bullion traders say after the Union Budget presentation, jewellery purchases picked up further. “People were expecting a duty cut in the budget and had deferred buying decisions. Those who were set on buying went ahead with purchases after the budget announcement as no relief in duties or taxes was announced,” said a city-based jeweller.

With the onset of the Holashtak period – considered inauspicious for purchases – demand had weakened in the last week of February. “There are no auspicious occasions or festivals or wedding muhurats in the coming months. As a result, it appears overall demand for bullion and jewellery will stay weak,” said Hemant Choksi, a bullion dealer.

Courtesy: Times of India