Jewellers are expecting a 20% -30% increase in sales this Diwali as the market sentiment has become positive after the government decided to do away with KYC requirement for cash purchase of gold of Rs 50,000.
Ishu Datwani, founder, ANMOL said “We are expecting an increase in demand for both gold and diamond jewellery this Dhanteras. It is also the onset of the wedding season, so there will be a good demand for small and big-ticket items. The announcement of PMLA act’s withdrawal is a big relief and the timing is right. There are women/housewives who come to us to buy jewellery with the money they save from kitties.Keeping favourable factors in mind, we are expecting at least 20-25% increase in sales this Dhanteras”.
On Thursday morning, the gold price was hovering Rs 29,890 per 10 gm, a little less than Tuesday when the price was rs 29,910 per 10 gm in the local market. In the international market, gold stood little changed after the dollar recouped early losses, with investors awaiting the release of the US Federal Reserve’s minutes from its September meeting for clues on further interest rate hikes this year.
Aditya Pethe, director, WHP Jewellers said “We are expecting a good demand this season. The market sentiment has improved since Akshay Tritiya and government’s decision of putting gems and jewellery industry in a 3% slab has reinstated consumer’s faith in the industry. In last three years, the sector has faced several turmoils due to various amendments in regulations and this was much needed for the industry. The KYC requirement for rs 50,000 cash purchase of jewellery had affected sales as the move had restricted consumers from buying jewellery. The timing of the announcement couldn’t have been better as Diwali is around the corner and this move will translate into a positive sentiment amongst buyers. With current the market scenario, we are expecting a 30-35% increase in sales and have noticed that younger consumers prefer more of lightweight diamond jewellery.”
Added Vaibhav Saraf, director, Aisshpra Gems & Jewels that they are expecting a positive trend this festive season. “With our new store in Gorakhpur footfalls have further boosted. People are becoming more and more aware of the benefits of hallmarked jewellery in tier II and tier III cities as it increases transparency in dealings. thus organized The removal of PMLA from gems & jewellery sector are a major relief and a welcome decision especially due to the festival season being around the corner. The 3% GST will also have no impact on the festive sales.”
Quote by Ms Tanya Rastogi, Director, Lala Jugal Kishore Jewellers – “This Dhanteras the mood is a watchful excitement. As per the statistics, the currency flow in our economy has reached back to the pre-demonetization levels. The undisputed annual demands have accrued for an extended period, and are expected to realize now. And frankly, the unwillingness to sit on currency in face of frequent unpredictable government policies and gold being the most popular mode of conversion nationally, all point towards a highly favourable oncoming Dhanteras”.