Jewellers see silver lining in January 2019

Source: The Hitavada      Date: 15 Dec 2018 11:44:56


 

Business Bureau,

The month of December is believed to be one of the best seasons for jewellers. The Sarafa Bazaars see sizable customers during this time and gold and silver ornaments enjoy huge demand. But surprisingly, the common trend in missing right now. According to a rough estimate, business volume of the jewellers is 20-25 per cent less in the current season than what they experience every year.

“Yes, the markets are not witnessing excitement even as the gold and silver prices are hovering at reasonable levels,” said Nagpur Sarafa Association President Kishore Dharashivkar.

He said that the fluctuating gold and silver could be one of the reasons for unsatisfactory demand for jewellery. “The price of gold saw jump of about Rs 300-400 per 10 gm on the day when former Governor of Reserve Bank of India Urjit Patel had resigned. Then the prices again slipped. I think such fluctuations confused the buyers and they delay buying gold,” Dharashivkar said.

Apart from this, Dharashivkar said that drop in number of marriage ceremonies in Maharashtrian communities in December was another reason for poor demand for jewellery. “Every year, we see large number of marriage ceremonies in December end. But this season, it is not up to the mark which is subsequently failing to create the demand,” he observed.

However Dharashivkar said that the market is expected to start buzzing from January 2019. “Those who are now on the back foot will certainly buy gold in January when marriage season will actually start. They will buy gold even if gold and silver prizes o up,” he said.

On Friday gold was sold at a price of Rs 31,870 per 10 grams while silver saw price tag of Rs 39,000 per kg. Chairman of All India Gem And Jewellery Domestic Council Nitin Khandelwal also told The Hitavada that there is sluggishness in the markets.

“Normally, the month of December is considered as peak season of gold and silver trade. But somehow the excitement is missing. Though many factors are responsible for this trend, less marriage ceremonies in current season is playing major role,”
he said.

Apart from this, Khandelwal said non-availability of cash in the hands of many farmers and the prevailing political situation in the country is also pushing the buyers on back foot.

Another jeweller, who preferred not to be quoted, said that there is a belief among many buyers that gold prices would fall in coming days and thus they are adopting g wait and watch policy.

“It is very difficult to predict the gold prices but I think the prices are not going to come down. Parameters like value of Indian rupee against the US dollar; crude oil prices and couple of other international parameters show that the prices would climb up in coming days,” he said.