Jewellery market glitters on Day One - New Year 2018

Source: The Hitavada      Date: 02 Jan 2018 10:22:17


Business Bureau,

THE topsy-turvy jewellery market of 2017 moved ahead in the New Year 2018 with an inflationary trend. Gold prices on Monday crossed Rs 30,000 per 10 gram mark.The rates quoted on Monday were gold Rs 32,300 per 10 grams and silver Rs 39,700 per kg. Sources in the market also informed that the rate of gold in the beginning of the December 2017 was Rs 29,300. If sources are to be believed, there is an increase of Rs 1,000 on gold per 10 gram. The prices of gold were likely to surge in the coming days, sources said.Rajesh Rokde, Director of Gems and Jewellery Federation of India (GJF) and Secretary of Nagpur Sarafa Association said:

“People have returned from the vacation and the market is seeing renewed demand for gold as the marriage season will start from January 15. On the very first day of the New Year, people have started visiting the jewellery showrooms in the city,” he said. He said that not only the marriage season would add glitter to the demand for jewellery in the market but the Maharashtrian festival ‘Makar Sankranti’, which is a fortnight away, would also give a big boost.

“During Makar Sankranti, the demand for gold and silver articles is more as ladies prefer to give silver articles as well as utensils to their relatives and close friends. Jewellers in the market have added new stock to meet the demand during the festival,” he said. Looking at the present trend in the market, Rokde predicted that gold would cross the barrier of Rs 32,000 per 10 gram in the month of May and July.

Taking the flashback of the last year, he said that the year 2017 started with panic in the market as the Government was gearing up to introduce the Goods and Services Tax (GST) and there was uncertainty in the market about the tax slabs. The newly introduced KYC norms also kept the customers at bay for some days from the market. He said that at present the jewellers were accustomed with the new law of GST and also the KYC norms were being relaxed. Rokde also pointed out international factors like the North Korean warnings which had increased uncertainty in the market and the volatility would prevail and the rates were bound to increase further. He demanded that the Government should keep a vigil on the parallel gold market which was disturbing the genuine jewellers. Parallel gold market was manipulating the rates and creating panic in the market, he added.

“We have suggested the Government to keep a minimum tax on jewellery so that the tax collection will increase. The GST rate of 3 per cent should be reduced as we want to give optimum benefit to our customers. We hope that the General Budget will not disappoint us and it will be jeweller-friendly,” he said.

Ashok Vastani, Director of Dass Jewellers said that the rates of jewellery might jack up further with the onset of marriage season.