Millennium Post

Gold sales increase by 30% on Dhanteras day

Gold sales increased by up to 30 per cent on Sunday as demand for wedding jewelery attracted more buyers on the auspicious Dhanteras despite high prices.

Currently, gold prices are ruling at around Rs 32,000 per 10 gram in the national capital and Rs 32,100 in Mumbai.

'Although we were not expecting this, sales have been very good. We expect better sales compared to last Dhanteras,' said P C Jeweller Managing Director Balram Garg. P C Jeweller has 30 showrooms across the country.

Pawan Gupta, director of another city-based outlet, P P Jewellers, observed, 'The rush of buyers clearly indicates that the high prices have not dampened demand. We expect 25-30 per cent growth of sales.'

Dhanteras is considered an auspicious day for making new purchases, especially precious metals.

Jewellery retailers at the Chandi Chowk market said that much of the demand was for jewellery as compared to gold and silver coins and bars during last year's Dhanteras.

However, some retailers in the capital like Omsons Jewellers said that sales were down as compared to last year's Dhanteras and small size gold coins and jewellery dominated the festival sales.

In the country's financial capital Mumbai, UT Zaveri retail chain owner Kumar Jain said, 'The footfall this year was more than expectations. We see 25-30 per cent growth in sales in terms of volume.'

Asked if the income tax searches at the jewellery market in Zaveri Bazaar, Mumbai, had hit sales, Jain, who is also vice-president of Mumbai Jewellers' Association, replied:, 'The income tax raid was done on 'Angadia' (informal bankers) and not on bullion retailers and traders. So business was brisk."

Tribhovandas Bhimji Zaveri Marketing Head Kiran Dixit said, 'Footfalls were much higher than last year and the inclination towards jewellery is more than that towards coins this year due to the wedding season, which starts immediately after Diwali.'

'As the Dhanteras muhurat was till 2 PM on Tuesday, the gold buying would continue,' he added.

Besides, the purchase of physical gold, investment in gold exchange-traded funds (ETFs), showed a record improvement on the National Stock Exchange (NSE). The National Stock Exchange recorded a traded value of Rs 1,337 crore in gold exchange-traded funds  on a special trading session on Dhanteras against Rs 636 crore on the same festival last year, an official statement said. As much as 4,441 kg worth of gold was traded on the exchange platform, the National Stock Exchange added.

India, the world's largest consumer of gold, is expected to import 750tonnes-800 tonnes in the 2012 calendar year, down from 969 tonnes last year.
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