It is considered most auspicious time for buying gold, silver or even the utensils for the household. But Dhanteras, which also marks first of five day Diwali festival is mostly utilized for gold buying and even the institutional jewellers admit that this the time when gold buying is highest.
Most industry watchers claimed that while Dusshera sales remained subdued due to a government regulation which made it mandatory for jewelers to keep a record of PAN details of customers for transactions above Rs. 50,000, the subsequent withdrawal of the notice has improved sentiment. Anticipating a surge in demand from local jewelers, gold prices recovered by Rs. 50 to Rs. 30,850 per ten grams at the bullion market on October 14. Silver also climbed Rs. 300 to Rs. 41,500 per kg due to increased offtake by industrial units and coin makers.
However, according to the Director of India Bullion and Jewellers Association (IBJA), Saurabh Gadgil, the market sentiment is improving but it has not yet become buoyant.
“If the overall business remains same as the last year or goes marginally up by 5 per cent, we will be very happy,” added Gadgil, who is also PNG Jewellers Chairman and Managing Director.
Jewelers are worried that a combination of factors like the sluggish economy, postponement of salaries, lesser bonuses and confusion over GST compliance may make buyers wary this festival season. Echoing a similar view, All India Gems and Jewellery Trade Federation (GJF) Chairman Nitin Khandelwal said there has been some relief for the maker players due to the government decision on the PMLA. However, due to less currency in the market the overall sentiment is dull, he said. The business this year is expected to be at par with last year or could even be lower, Khandelwal told Press Trust of India (PTI). To lure buyers, jewelers have lined up discounts and freebies, according to market experts. Meanwhile the government has fixed the purchase price of its Sovereign Gold Bond (SGB) at Rs. 2,987 per gram and said that the scheme will be open for subscription on October 16, a few days before Dhanteras festival.