This Dhanteras, jewellers are betting on a recovery in consumption and improved customers' trust in gold as an asset class due to the rise in prices amid the pandemic.
Notwithstanding the ruling high gold prices and ongoing COVID-19 uncertainties, jewellers are expecting a revival in retail sales this festive season as the yellow metal has always been an integral part of festivals in India, particularly so during Dhanteras, Diwali, and the ensuing wedding season.
"There has been a gradual growth in both footfalls and sales since the beginning of the festive season which has grown even more since the last few days despite the ongoing uncertainties over COVID. This has made us hopeful that we will be able to do 70% of last year's business during Dhanteras," All India Gems and Jewellery Domestic Council (GJF) Chairman Anantha Padmanabhan told PTI.
Gold prices in India have lingering around Rs 52,000 per 10 grams.
Dhanteras is considered as an auspicious occasion for Hindus to purchase the precious metal and is believed to bring in good fortune and wealth.
Digital gold providers like SafeGold, Augmont and MMTC-PAMP and other online platforms could find this period very conducive for increasing volumes and for broadening the consumer base, said Somasundaram PR, World Gold Council Managing Director, India, to PTI adding that "the higher savings following drop in consumption expenditure of many households as a result of lockdown could flow to gold."
PNG Jewellers Chairman and Managing Director Saurabh Gadgil stated that this festive season the footfalls are fairly regular and the market seems to be in a revival mode.
"We are seeing a clear trend of agri-business backed families spending more. Rural India is showing more consumption appetite than metros."
"Gold is still the most favoured purchase for the festive season. A lot of people including Millennial and first-time investors are favouring gold as an investment option. We are also seeing strong bookings in light-weight and wearable jewellery to be picked up for Dhanteras and Diwali besides bullion products," he said.
He further added that "we are expecting to do business of around 85% of last Diwali in quantity terms and most certainly we will exceed last year's business in value terms since gold prices have risen in these last 12 months."