Consumers shying away from
gold this Diwali
Delhi, Oct 24 (IANS) Diwali is the time when most people shop
for gold and stores reap rich profits, but this year rising
gold prices and high levels of inflation have kept buyers
of gold jewellery has not been bad, but it has not been as
robust as in other years, forcing retailers to wait for Dhanteras,
two days before Diwali when people traditionally buy gold
customers do indulge in festive shopping, the volume of sales
have gone down," Mehul Choksi, chairman and managing
director of Gitanjali group that deals in brands such as Nakshatra,
D'damas, Gili and De Beers, told IANS.
similar sentiments, Harish Bakshi, senior manager in charge
of sales and promotion at Ashwani Kumar's Mehrasons Jewellers,
told IANS: "An overall decline of 20-30 percent in terms
of sale of gold jewellery cannot be ruled out."
rate of the yellow metal is fluctuating between Rs.12,400
and Rs.15,500 per 10 grams at the moment, unlike last year
when the price was close to Rs.10,100 around Diwali time.
too, has played havoc with a jump in rate.
World Gold Council associate director Keyur Shah said inflation
is not the sole reason for the plummeting sale of gold jewellery,
adding that buying gold jewellery is usually a "planned
purchase and people save money for it for months together".
to Sandeep Kulhali, vice president at Tanishq, the Tata Group's
jewellery division, said August saw a rise in sales, and people
are now avoiding spending on gold yet again around Diwali.
Jain, partner at KK Jewellers, cited other reasons. "Share
market crash, overall collapse of the economy, rising price
of gold and high inflation rates have limited purchasing power,
and people have become more conscious," he said.
has become so difficult to touch gold now," said Neelam
Sharma, a homemaker who used to buy gold each year on Diwali
but is refraining from doing the same this year.
keep a check on the rate of gold before I go out shopping
for jewellery since I want to get a good deal and not shell
out all my savings," affirmed Mansi Dhar, who is a trainer
with a business process outsourcing firm.
a shift of preference from gold to diamond has also gained
momentum in recent times, challenging the position of the
yellow metal as an investment route.
"Diamonds have become more popular among women from
all walks of life, especially working women as the stone exudes
a lot of class," Kulhali of Tanishq told IANS over phone
entails a range in diamond jewellery called "The Everyday
Collection", specially designed for working women.
complements both western and Indian wear, which turns out
to be more economical as one doesn't have to purchase different
kinds of jewellery for different outfits," stated Vrinda
Rai, working with a leading Bank.