GJF: Gold sales in India jumped 20% during Diwali

NEW DELHI (Scrap Monster): The trade statistics released by the All India Gems and Jewellery Trade Federation (GJF) indicates 20% jump in gold sales during Diwali this year. This is in comparison with the gold sales recorded during Diwali season last year.

The trade body noted that the gold premiums during the festive season surged almost 50% from $12 per Oz on London prices to as high as $17 to $18 per Oz during Diwali. According to Bachhraj Bamalwa, Director, GJF, the gold demand in the country is likely to remain robust in upcoming months due to increased wedding season demand.

However, Indian Bullion & Jewellers Association (IBJA) announced that demand for gold jewelry and coins during Dhanteras remained more or less unchanged from the previous year. Feedbacks pouring in from jewelers and bullion traders indicate that Dhanteras 2014 witnessed modest sales, said Suresh Jain, President, IBJA.

Earlier, MMTC-PAMP-the country’s leading gold and silver refining and minting facility had announced that all coins minted for Diwali season has been sold out. The Diwali season this year witnessed brisk sales of gold pendants and coins embossed with images of Hindu gods.

The year-on-year drop in gold prices triggered increased buying. Incidentally, gold prices are down by nearly 11% when compared with the prices last year. Gold at comfortable rate attracted heavy buying from rural population in the country.