Mumbai:
Jewellers are upbeat and looking forward to the year ending on a positive note following gold regaining its lustre business-wise during the festive season.
"Diwali commenced on a very affirmative note and witnessed a record breaking sale on 'Dhanteras' which has not been witnessed in the last seven years. The 47 per cent decline in business that was witnessed in the first six months of this year has already been compensated during the festive season," The All India Gems and Jewellery Trade Federation's Chairman Ashok Minawala said here.
"About five to six tonnes must have been sold on 'Dhanteras' day itself," Minawala said, adding that in the last 25 days about 60 tonnes of the metal is estimated to have been sold.
Jewellers are upbeat and are now looking forward to the year ending on a positive note. Prices shall be in the same range unless the dollar weakens, which gives the consumer the best opportunity for the forthcoming wedding season, Minawala said.
Standard gold (99.5 purity) was quoted at Rs 11,795 per 10 grams, while pure gold (99.9 purity) was quoting at Rs 11,860 in the Mumbai bullion market on Saturday.
In the international market, gold bullion lost 17 per cent in October, its biggest decline since February 1983, when it finished the month 18.2 per cent lower.
Bullion is down 12 per cent this year, well below the record high of USD 1,030.80 an ounce struck in March.
Gold sales figure has seen an overall increase of 125 per cent during the festive season compared with last year.
This is good news for the jewellers who are witnessing some brisk business during the festive season as consumers are keen to encash on the dip in prices.
Gold has seen a renewed focus in terms of investment from consumers who see it as a more secure investment.
"The gold rush was a combined result of the festival of Diwali and lower prices which have resulted in a shortage of gold bars. A physical shortage of gold is happening worldwide," gold analyst Amit Zaveri said.
"Gold has offered double-digit (11 to 12 per cent) returns in the current decade when all other asset classes are turning into the red," Minawala said.
"October alone has seen a sale of gold and precious stones to the extent of Rs 11,000 crore. This year has witnessed growth tremendously in semi-urban and rural regions as compared to urban regions. Around 35 per cent of the sales are from coins and bars," bullion expert Dinesh Jain said.
