Jewellers on gazing a festive season!
Looking at Dhanteras at latch, Mr Shreyansh Kapoor, Vice President and Partner, Kashi Jewellers says, “The industry is going through a massive change right now. There has been a lot of shift in how jewellers are buying, how they are selling and how they are managing their business. Overall billing on raw materials has reduced as GST on diamonds was reduced from 3% to 2.5%. That has been a positive development.
Gold rate has been steady over the last year, with a gain of almost 20% so it still remains a great investment vehicle for consumers. Right now we are already around the 39,000 mark. I don't see gold prices dropping anytime in the near future given that we are already in the festive season, once that ends, the wedding season begins immediately. So investment outlook for Gold shall remain strong.
We are hoping for buyers to come back to the stores to make jewellery purchases as it is a festive time and also, a lot of consumers who don't have weddings or occasions in the year, end up buying during Diwali. The love for the precious metal is still there, it all depends on the rate that customers are comfortable with!”
On the other hand Saurabh Gadgil, CMD-PNG Jewellers; Director and National Vice President-IBJA say, “Sales during the upcoming festive season despite the recent elevation in gold prices, this Diwali will be no different. Diwali is one of the most auspicious occasions in the Indian calendar, and we see individuals from every socioeconomic background shop for gold and jewellery.
Another important factor driving sentiment is the deeply ingrained culture of gifting during the festive season. With Dhanteras around the corner, we’re also confident that the sales volume of gold coins will remain steady.
The festive season opened on a high during Dussehra and thus far has maintained its momentum. We’ve witnessed positive market sentiment, and the orders we’ve received are indicative of renewed customer interest. In terms of style and design, lighter pieces are in vogue this season.
Though, this is a partly driven by economic considerations and a desire for pocket-friendly alternatives. The lower ticket value of individual purchases is compensated for by higher footfall. A positive, and surprising, development this season has been an uptick in the interest in diamonds and platinum, with studded jewellery making a comeback in a big way.
Overall, we’re optimistic about the market scenario and anticipate good consumption for the jewellery industry as a whole.”
Commenting for rise of gold prices he adds, “With gold prices recently stabilizing between 37,000 and 38,000 (per 10g), consumer sentiment has been soothed. On a global level, the easing of the trade conflict between the USA and China has also helped stabilize prices. This rate stability is also likely to spur demand. Overall, I am bullish on gold prices.
Despite the occasional minor correction, I foresee them rising in the near term. My advice would be to invest regularly, especially during dips, with a time-frame of 5 to 10 years.”
