Despite price hike, demand for gold jewellery on rise

Business Bureau : EVEN though there has been a rise of 25 per cent in prices of gold compared to the year-ago period, most jewellers are happy with increase in demand of 10 per cent compared to last year. The local gold prices are being quoted at approximately Rs 38,200 per 10 grams (plus Goods and Services Tax of 3 per cent) and silver at Rs 40,100 per kilo (plus GST of 3 per cent). “The craze of buying gold and silver jewellery is still intact even as the gold and silver prices inflate to new highs. We are witnessing a 10 per cent surge in demand for gold and silver jewellery,” Kishore Sheth, Director of Batukbhai and Sons Jewellers, Dharampeth while speaking to The Hitavada.

He said, “The number of footfalls of customers is increasing at our showroom from the past five days. We expect the demand to continue throughout the festive and upcoming wedding season.” Earlier, when the prices of gold touched a peak of Rs 40,000 per 10 grams, people were confused with the steep hike in gold prices. Now the situation has completely changed and people have become comfortable with the increased gold prices. Every fall in gold price offers an opportunity to buy. They have realised that the prices will continue to rise in the coming days, he added. Rajesh Khandelwal of Khandelwal Jewellers, Dharamepth said that there is marginal growth in demand for gold and silver jewellery due to surge in prices compared to last year. He anticipates that the demand will start to pick-up in the coming days.

Amit Sathe of Sathe Jewellers said that there is good demand for gold and silver jewellery this season. The growth in demand for jewellery is between 10 per cent and 15 per cent compared to last year. Most jewellers have introduced stunning new designs and collections for the festive season which is pulling customers to make purchases. Sachin Darodkar of Shri Mehar Jewellers said, “There is a growth in demand of 5 per cent to 10 per cent this year.” He said that from Navratri customers have come out in the market to make their wedding purchases. Rajesh Rokde of Rokde Jewellers said, he was happy with the turnout of customers to his various showrooms this festive season. He witnessed growth in demand of 10 per cent compared to previous year.

He said, “There is a pick-up in demand as the wedding season is approaching and people tend to make purchases a few months in advance.” Pradip Kothari of Karan Kothari Jewellers who has a string of shops across the city said that there is a 5 per cent to 10 per cent growth in demand compared to the previous year. “The Indian ladies love to buy gold jewellery no matter what the prices are,” he said. Shrikant Bhandarkar of Bhandarkar Jewellers said, “There is a good response for gold jewellery and silver gift articles this season. The footfalls have intensified and we expects this festive season to be better than last year.” He said that customers have kept their budgets the same and reduced the quantity of jewellery to be bought. He sees a surge in growth of demand of 10 per cent to 15 per cent this year as compared to the previous year.

Courtesy: TheHitavada