Festival fuels demand for jewellery

Ahmedabad: The auspicious muhurat of Dussehra fuelled the release of long pent-up demand for precious metals – gold and silver. Gold and silver jewellery sales remained buoyant on account of Dussehra on Sunday. While overall sales remained low by 60% across the city, several jewellery showrooms saw a decent rush of customers. Estimates by Jewellers’ Association of Ahmedabad (JAA) suggest that nearly 200kg of gold was traded across the state in a single day on Sunday.

Gold price settled at Rs 52,700 per 10 gram on Sunday and silver price stood at Rs 63,500 per kilogram. “Stability in prices is the biggest factor that has driven the demand for precious metals, particularly gold. The demand was good, and after a long time jewellery stores across the state saw customer rush. However, there may be an average 60% decline against last year’s Dussehra in terms of volume,” said Haresh Acharya, director, India Bullion and Jewellers’ Association (IBJA).

Due to the upcoming wedding season, the demand for gold and diamond jewellery was significantly good on Sunday. “Most of our customers came to purchase jewellery for weddings. The demand for lightweight jewellery was there, but minimal. Most are regular customers who tend to make purchases either in form of gold or silver coins or jewellery to honour the auspicious day,” said Manoj Soni, a city-based jeweller.

Discounts offered by jewellers have further fuelled demand. “Demand from rural areas is typically good and we expect more demand in the days to come. We are offering good discounts on making charges and this is further driving sales. While sentimental purchases are less, planned purchases are significantly good for weddings and upcoming occasions,” said a city-based jeweller.

Courtesy: TOI