Saturday, November 2, 2013

Diwali loses its shine; gold & silver sales down by 20% & 40% respectively on Dhanteras

KOLKATA: Sparks are missing in this year\'s Dhanteras as high gold prices coupled with a liquidity crisis have pushed down sales of gold and silver. Gold jewellery sales are down almost 20% while silver demand has declined almost 40% though the price of the metal softened on Friday by 3% to Rs 49,500 per kg.

Shoppers shied away from bigticket purchases while there was some movement in the midlevel category (up to Rs 75,000). Jewellers and bullion traders attribute this drop to gold prices climbing to Rs 32,000 per 10 gm on Dhanteras day as the rupee dropped 36 paise to 61.86 against dollar in late morning trade.

The investment demand for gold has dropped drastically, with coin and bar sales plummeting 80% on Dhanteras day, which is considered an auspicious day according to Hindu religion.

Haresh Soni, chairman of the All India Gem & Jewellery Trade Federation, told ET: \"Jewellers are expecting some positive sales happening today after almost a lull of three months from July onwards. Though there has been some demand for jewellery, sales of gold bars and coin have dropped.\"

Added Lalit Jagawat of Zaveri Bazar-based Nakoda Bullion: \"Since morning, there have been hardly any sales in bars and coins. For me it is a very lacklustre Dhanteras.\" Rajiv Popley of Popley & Sons said generally wedding orders are placed on Dhanteras day.
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