R Sujatha, a housewife, stayed away from buying gold since August due to the high price of the precious metal but could not resist buying it today with the price being reasonable on Dhanteras - a Hindu festival on Dhanvantari Trayodashi, which is the first day that marks the festival of Diwali in India.
One gram (22 carat) gold which on August 1 was Rs 3,498, went on to touch a new high of Rs 3,953 on September 19 and dropped to Rs 3,722 on October 1 and further to Rs 3,664 today. “It is quite an attractive price to buy gold today,” she said.
And, retailers are happy to get back consumers like Sujatha, though after a long gap.
"The market has been impacted by a sudden gold rate surge in July, and general down turn in consumer spending. Growth has been muted so far but we have seen an upsurge in our business since the last 5 days and the growth is back on target. Diamond sales are certainly outgrowing gold sales,” said Sandeep Kulhalli, Senior Vice President, Retail and Marketing, Jewellery Division, Titan Company Limited. Wedding continues to be the trigger for big value purchase and the new Diwali collection, Virasat is seeing higher than expected sales.Tanishq stores across the country are all packed since last few days, he added. Titan expects robust Dhanteras and Diwali sales.
Echoing a similar view, PR Somasundaram, Managing Director, India, World Gold Council said the sharp rise in the gold price impacted trade and the consumer outlook in third quarter, however, Dhanteras seems to have changed this as had been expected, he said.
Gold has always been at the centre of festivals and gifting traditions in India. This is particularly so during Dhanteras and Diwali, and the wedding season that follows. “It is a Dhanteras with a special impetus as gold is one of the best performing asset classes now,” he said.
A good monsoon and softening of prices coupled with attractive offers by retailers in an effort to liquidate stock has boosted overall buying sentiment. Greater awareness among consumers of long term price trends is also supporting the buying. Footfalls are reported to be better compared with the start of the season, and a long wedding season supported by a significantly higher number of auspicious occasions this quarter is expected to buoy buying, he said.
And retailers are wooing customers with deep discounts. For instance, Kalyan Jewellers has announced a mega Diwali offers, which includes giveaways in the form of 3 lakh gold coins to its customers globally. During this period, the making charges will start from 3 per cent on gold jewellery. Additionally, customers can avail discount of Rs. 1,000 on purchase of every 8 gram of gold jewellery and free gold coins on purchase of studded jewellery. The brand is also offering up to flat 20 per cent discount on diamond jewellery.
TS Kalyanaraman, Chairman & Managing Director, Kalyan Jewellers said, “Diwali is all about prosperity and new beginnings. It is therefore an auspicious time to buy new jewellery. Our aim is to help customers extract more value from their purchase by availing grand discounts, which is sure to add joy to this season.”