Gold jewellery retailers expect only moderate sales during Dhanteras, a Hindu festival traditionally considered auspicious for gold and silver purchase.
While Mumbai-based Popley and Sons’ Director Rajiv Poley said that the retail chain is expecting a 15 per cent jump in sales, a top official at TBZ, a BSE-listed firm, said that he is not very upbeat.
New Delhi-based P C Jewellers expects 25 per cent growth in absolute terms as it added several new stores this year. Bhima Jewellers and Kalyan Jewellers also feel although the sentiment is down there will be some demand.
Among the factors that are acting as dampeners are shortage of the yellow metal due to curbs on imports, and rising prices. Gold prices are hovering at Rs 32,000 for 10 gm and is likely to cross the Rs 33,000 level on Dhanteras.
Harish Soni, Chairman of Gems and Jewellery Federation, said sales of gold coins or bars might decline by almost 50 per cent compared to last year.
The federation has requested retailers to sell smaller denominations of up to eight grams this year despite the RBI direction to go slow on the sale of coins. “We have allowed the sale of coins for Dhanteras because of religious sentiments ,” Soni added.
Recycling of old gold has gone up by 40-45 per cent for many retailers. Such sale was about 15 per cent of turnover till last fiscal.
Some cheer
It is not all gloom and doom however. A few retailers are upbeat as consumers have already made advance bookings at a time when prices were low.
Rajiv Popley said he has already got 50 per cent bookings at his stores. “Consumers will buy because the wedding season is round the corner,” he said.
Rajeev Sheth, Managing Director at Tara Jewels, concurs with that viewpoint. Despite all odds, retailers such as Tanishq, TBZ, Joyalukkas, and Malabar Gold are trying hard to woo the customers with 50 per cent discounts on making charges, cars, holiday packages, gemstones, free gold coins and even insurance products.
Customers at Tanishq will get a free gold pendant on purchase of select diamond jewellery of Rs 8,000 and up to 20 per cent off on making charges.