Benchmark gold prices may see a fall in the coming months while availability of the precious metal in the domestic market will continue to be tight due to the import restrictions of the Reserve Bank of India.
This was the view expressed by Joy Alukkas, Chairman and Managing Director of JoyAlukkas, one of India’s largest gold and jewellery retailers.
“In 2013, the gold and jewellery retail faced a nearly 35 per cent dip in business due to the stiff import norms and tight availability of gold. This has also encouraged sale of gold in the grey markets and smuggling of the commodity. Today, gold in India is at least 15 per cent costlier than offshore,” he told media persons here today.
Benchmark prices that peaked at $1919 an ounce between 2012 and 2013 has fallen to $1220 and is likely to further come down in the coming months, he feels.
The retailer, which has about 90 company-owned stores, including some 45 overseas, expects to clock a turnover of Rs 10,000 crore this fiscal, including Rs 4,600 crore from its Indian sales, up from Rs 4,020 crore last fiscal. “We could beat the slowdown with opening of new outlets,” Alukkas, who is ranked the 81st richest Indian by Forbes, said.
It plans to set up 10 stores in India this year with an investment of about Rs 600 crore to achieve its target of 100 stores in 10 countries.