NISHITHA NAIR SHRIVASTAVA
PANJIM: Gold is innate to festivities in India. This Diwali may seems a little lacklustre owing to several reasons such as escalating prices of gold, central government policies, and apparently even the mining ban in the state. But several clever customers have been stocking up since two months, when the prices were lower.
Which brings to fore an interesting phenomenon that buyers are no longer refraining from purchase during Pitru Paksha, which is considered inauspicious by Hindus. This year, Pitru Paksha was from September 19 to October 4.
“Earlier, no one bought gold during this period (Pitru Paksha). But now they are only looking at the rates (of gold),” says Sagar Pednekar, president, Goa Jewellers Association (GJA). Sale of gold had picked up since two months, but has dropped now owing to the price hike, he says.
“Every festival, gold rates increase. There has been a 50 per cent drop in the sale of gold this Diwali compared to last (season). The feeling of ‘season’ is not there. The market is not dead, but it is slow,” states Pednekar.
Panjim-based jeweller Kalidas Raikar too has noticed a 50 per cent drop in the sale of the yellow metal, which he sees as a probable outcome of the mining ban in Goa.
A slump in the demand for the 24 carat gold coins and bars, is what Sandra D’souza, store manager of Orra, has seen this Diwali.
Dhanesh Shirodkar, secretary GJA, however, expects the demand for gold and silver coins to rise this festival. “There has been a 40 to 45 per cent drop in sale of gold compared with the same period last year. Earlier, we got many orders between Ganesh Chaturthi and Diwali, but not this year. Many people are melting their old gold to make new ones now,” he says.
But Vikram Verlekar, managing director of Ulhas Jewellers, hatched a turnaround plan. “We planned an exhibition earlier this month, where we offered discounts on making charges and diamonds. This provided some respite during this economic slump. We got several pre-orders for Dhanteras during the exhibition, which is more than 10 per cent of last year’s. Demand has not reduced, only quantity has,” states Verlekar.
Dhanteras, on November 1, which marks the beginning of Diwali, is observed as the biggest gold buying day.
Speaking about government policies such as duty hike on gold jewellery imports from Thailand to 15 per cent from 1 per cent in 2012 or the customs duty on jewellery from 10% to 15% in September this year, Verlekar says these measures will not deter gold buying in India.
“When it comes to buying gold in India, there are lots of correlating factors. Gold is not just an investment here, it is a sentiment,” states Verlekar.
