Glitter missing in Mumbai’s Dhanteras shopping

Mumbai, Oct 17 (IANS) Though the glitter is lacking on Dhanteras this year, customers were coming in sufficient numbers to brighten the gold markets ahead of Diwali, top players said.

Despite anticipating a gloomy start to Diwali a few days ago, the gold and jewellery markets have been seeing many buyers since Sunday, and are optimistic of a relatively shining festive season.

All India Gems & Jewellery Federation Chairman Nitin Khandelwal said with certain issues - including the mandatory PAN/Aadhaar card for purchase of Rs 50,000 gold or jewellery - having been amicably resolved, it has boosted buyer sentiments.

"Though the footballs are increasing, we don't expect any growth over the last year's sales. We shall be happy even if last year's sales/quantity figures are achieved, coming after demonetization, GST, RERA, etc," a candid Khandelwal told IANS.

He admitted that GST did affect the markets, but it was not the sole factor, as other issues were responsible, including spiralling global prices of gold in the wake of the US-North Korea tensions.

Veteran commodities expert Ibrahim Patel and editor of CommodityDNA.com said this year the lower-middle-class has diverted mainly to consumer electronics and other gadgets, partially hitting gold jewellery sales.

"Those who are buying are preferring small jewellery due to the attractive reductions in labour (making) charges offered by the retailers and for the upcoming wedding season," Patel told IANS.

Similarly, rural folk who normally invest their savings in gold, have continued the trend this year too, but in very limited quantities, he pointed out.

According to Patel, this year there will be a minimum drop of 20 per cent in festival sales, though the global gold prices which were up to US$1,305 per ounce (31.10 gm/24 Karat gold) till Monday, have plummeted to $1,251 per ounce on Tuesday, which the customers can exploit for the current season.

In Mumbai, the gold prices hovered around Rs 29,600 per 10 gm/22 Karat, which is the most popular among customers.

Independent market sources said the government has advised top industry players to refrain from complaining about "low sales, bad markets" etc, in view of the current political scenario.

"We have been sounded out in clear terms to treat this as 'the new normal' and adjust our businesses, profits, etc. accordingly. So despite abnormally low sales, we term it 'a new' normal," a top Indian jeweller told IANS, requesting anonymity.

While Khandelwal expects the positive sentiments to continue post-Diwali and into the wedding season, Patel says a lot would also depend on the emerging global security scenario though spiralling international prices in gold may not sustain.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)