New Delhi/Mumbai : The pre-Diwali Dhanteras sale of gold and silver gathered pace in the first half of Friday with traders witnessing demand mostly for coins and lightweight jewellery due to high price of the yellow metal and COVID-19-induced financial distress, jewellers and experts said.
Due to the fear of coronavirus infection, many customers who had booked in advance are taking delivery of wedding orders on Friday, while some are buying safely through online brands like Tanishq and Melorra.
While those who cannot afford precious metal are shopping for steel utensils to make most of the Dhanteras festival being celebrated for two days this year, they added.
Dhanteras is an auspicious day for buying gold, silver and other valuables and is largely celebrated in North and West India.
Gold prices are ruling over Rs 50,000 per 10 gram at present, much higher than Rs 38,096 per 10 gram that prevailed on Dhanteras 2019.
Speaking to PTI, All India Gem and Jewellery Domestic Council chairman Anantha Padmanaban said, “we are witnessing steady footfalls since morning. However, the momentum is expected to pick-up towards the evening as Friday is a working day.”
World Gold Council Managing Director, India, Somasundaram PR said there have been “mixed responses” since Thursday evening but the sentiment is much better today. Whether it gets translated into sales, we need to wait and watch,” he said.
Somasundaram also mentioned that there is more demand especially for coins and bars on the digital platforms, as the lockdown necessitated by COVID-19 pandemic has integrated the digital behaviour of consumers.
Also, with gold ETF (electronically traded fund) and Sovereign Gold available, investment spending is expected to be more, he added.
Bengaluru-based online jewellery brand Melorra Founder and CEO Saroja Yeramilli said: “While we expected to grow by 30 per cent, we have grown by 90 per cent yesterday. We are expecting very good sales today also.”
The company offers lightweight jewellery in below Rs 60,000 range and is seeing strong sales in that segment, she said adding that Melorra has 15 per cent market share in the online jewellery segment in India.
Kumar Jain of UT Zaveri in the Sharaffa Bazar in Mumbai said there has been a good amount of footfall since morning. People are mostly buying wedding related jewellery, coins and silver utensils.
“There are over 1.5 lakh weddings scheduled on the first date this year, so we are witnessing a lot of movement on bangles, necklace rings among others,” he added.
PNG Jewellers Chairman and Managing Director Saurabh Gadgil, “this morning has begun with a good note. We expect sales to be robust as the gold price seems to be stable currently. Most of the footfalls are mainly translating into lightweight and wearable jewellery items and coins.”
There are also a lot of bookings taking place for wedding jewellery. The company is getting more orders on its digital platform for coins, but for jewellery people are still preferring the physical stores, he said.
“We expect to do 85-90 per cent of last year’s business in terms of volume and in terms of price it will be much more than last year,” he added.
Gem Selections and Khanna Gems Group Chairman Pankaj Khanna said people are “cautious” of spending on precious metals because of the economic setback due to COVID-19. However, the company has seen positive sales this year.
People are purchasing more gold coins, silver and precious gemstones like sapphire and emerald that are considered to bring prosperity, he said.
“We are hopeful that we will make a business of approximately Rs 3.22 crore today,” he added. (AGENCIES)
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