Record high gold prices take sheen off jewellery sales

PTI New Delhi: Jewellers and retailers in India expect demand to stay muted and volumes to decline this Dhanteras despite lower customs duty as the price of the yellow metal has hit record-high levels ahead of Diwali festivities. Gold price is currently hovering around Rs 80,000 per 10 grams, while silver prices have crossed Rs 1,00,000 per kg in the national capital. Senco Gold and Diamonds Managing Director and Chief Executive Officer Suvankar Sen said in terms of sales, the volumes will take a hit following the rising price. "So, in terms of quantity to be sold, compared to last Dhanteras, minimum 10-12 per cent degrowth in volumes will happen, but because the prices have gone up so much. Maybe we will end up having about 12-15 per cent growth in terms of value," he added.

This time with the global uncertainties, the gold price has grown up a little too fast in a short period of time. prices are at all-time highs both domestically and internationally. Despite a duty cut that came as a relief for the largest consumer, prices are back above all-time highs denting some appetite for the consumers. However, as has been the case for decades, investors tend to get used to higher prices over time and demand catches up again, Commtrendz Research Cofounder and CEO Gnanasekar Thiagarajan told PTI. Meanwhile, P N Gadgil Managing Director Saurabh Gadgil said, in volume terms the industry is likely to 'just meet last year's numbers'. "Because of the Israel and the Middle East issue, gold prices have propped up as it looked as a safe-haven.

During Dussehra what we saw was there's been a growth in value because gold has gone up... Business has gone up by 15-20 per cent and in volume terms we have been able to just meet last year's numbers," he added. Despite all-time high price levels, some jewellers and retailers believe though consumer demand could take a hit, central bank and investment demand could more than compensate for that.