Gold prices fell over 7% in the past month, bringing buyers back to jewellery stores before Dhanteras on November 6. Jewellers expect a 10-12% rise in sales volume. Ramesh Kalyanaraman said, "The recent softening in gold and silver prices is a welcome development for customers who had been waiting."
Synopsis
Gold prices have dropped significantly, encouraging consumers to return to jewellery stores for upcoming purchases. The correction in gold prices has led to increased footfalls and advance bookings for weddings. Jewellers expect a rise in sales volume on Dhanteras, which is an auspicious buying day. Consumers are opting for lightweight jewellery and lower-karat gold to manage their budget constraints.
Kolkata: A more than 7% decline in gold prices over the past month is bringing buyers back to jewellery stores ahead of Dhanteras, with consumers stepping up purchases and placing advance orders for the upcoming wedding season.
Buying has picked up since last week, as gold prices began correcting, and is expected to continue until Dhanteras on November 6, said jewellers. Surendra Mehta, national secretary of the India Bullion and Jewellers Association, predicted sales volume to increase 10-12% from a year earlier on the day considered to be one of the most auspicious to make high-value purchases.
Gold was trading at ₹1.37 lakh per 10 gm in Mumbai's spot market on Monday. The price has dropped from ₹1.48 lakh a month earlier and the all-time high of ₹1.80 lakh recorded on January 29.
Smaller-ticket Purchases
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Jewellers are reporting an improvement in store footfalls, with demand picking up for gold jewellery as well as silver coins and articles. Advance bookings for the wedding season are also gathering pace, indicating that some of the demand deferred during the sharp price rally is returning to the market.
"The recent softening in gold and silver prices, coming just ahead of Dhanteras, is a welcome development for customers who had been waiting for a more comfortable point to make their festive purchases," said Ramesh Kalyanaraman, executive director of Kalyan Jewellers. "We saw good momentum over the weekend as footfalls picked up significantly across our showrooms, with gold sales gaining traction," he said.
Sparkling sparkle
The fall in price is influencing the decision of some consumers on the weight and design of jewellery, according to Vipul Shah, executive director of Aura Jewels. "With improved affordability, consumers have greater flexibility to explore a wider range of designs, consider slightly higher-weight jewellery or make more considered purchases within their existing budgets," said Shah, who expects wedding-related buying to remain a key demand driver.
Still, with the price remaining elevated compared with historic levels, consumers are increasingly looking at lightweight jewellery, lower-karat gold and smaller-ticket purchases to manage their budgets, said jewellers.
Kalyanaraman said lightweight and 18-karat collections were helping customers opt for traditional designs at more accessible price points.
Gurukeerthi Gurunathan, cofounder at Titan Co-owned CaratLane, said design was leading the conversation this festive season, far more than the metal or price. "Everyday lightweight diamond pieces, studded jewellery and solitaires are witnessing traction," he said.
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