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Mumbai: Gold jewellery sales is likely to increase by up to 15% during Dhanteras compared to last year, as prices have steadied, reports PTI quoting industry experts.
"We are expecting about 10%-15% growth in jewellery sales during Dhanteras compared to last year, as footfalls have increased. Prices have also steadied and is ruling over Rs19,500 per 10 grams level," former All India Gems and Jewellery Association chairman Ashok Minawala told PTI here.
Dhanteras is the first day of the five-day Diwali festival and is considered auspicious for buying gold and silver.
Total jewellery sales across the country stood at Rs1,12,000 crore last year during Dhanteras, which is to be celebrated on 3rd November, Minawala said.
Gold prices, which had touched a high of Rs20,120 on 15th October, started falling on profit-taking, creating buying interest. Presently, prices have again started climbing due to a weak US dollar and was ruling at Rs19,725 in the domestic market on Monday and at $1,362 an ounce (28.34 grams) in the international markets.
"The recent correction in price encouraged people to book gold jewellery and coins. We are expecting a 10%-15% jump in business this year, "All India Gems and Jewellery Trade Federation (GJF) chairman, Vinod Hayagriv said.
The federation did a fair amount of promotions across the country this year and there are positive indications that business will boom this season, he said.
Sumesh Wadhera of GJF said that despite the price ruling over Rs 19,000 mark, jewellery bookings are higher this year.
"Going by this trend, we expect robust sales both in jewellery and coins," he said.
According to a World Gold Council (WGC) statement, investments in gold have witnessed a healthy demand through 2010 and with the festive season on the anvil it is only expected to get better with investors making a beeline for products like medallions and ETFs (exchange traded funds).
India's volume of gold in investments has grown by 264% to 92.5 tonnes in the first-half of 2010, as compared to 25.4 tonnes in the previous corresponding period, WGC said.
In value terms, investments accounted for Rs14,800 crore for the same period. The upswing in gold investments speaks volumes of the investor confidence in the yellow metal, it said.
However, Bombay Bullion Association director Suresh Hundia expressed a divergent view saying the business is likely to remain the same as last year in volume terms.
"As the prices are so high, it is difficult for people to buy gold and they are diverting their funds towards consumer goods and home appliances. So volume-wise, the business will be less. However, value-wise it may be the same as last year," he said.