India's Gold jewelry purchases clocked 15% growth, footfalls surged: GJF

NEW DELHI (Scrap Monster): The jewellery shops across the country witnessed increased sales on the occasion of Dhanteras. According to rough estimates, the gold purchases climbed higher by at least 15% to 20% when compared to last year. The retail jewelry outlets in the country recorded higher foot falls this year.

According to Haresh Soni, Chairman, All India Gem & Jewellery Trade Federation (GJF), the sentiment remained buoyant during Dhanteras day yesterday. The outlook remains positive, as the market is likely to improve, he noted. Furthermore, rural demand also remained strong, on account of lower gold prices.

Last year, the gold supply was squeezed following strict restrictions on gold imports. This had resulted in higher gold prices. Gold is cheaper by nearly 11% when compared to last year, Soni observed. The cheaper gold price played prominent role in lifting gold sales this year. The supply side too remained better in comparison with the previous year.

According to shop ownerss, sale of heavy jewellery too remained robust. There was unprecedented rise in demand for gold and silver coins, as most of the shops went out of stock by afternoon. The footfalls surged as people flocked the shops to buy gold on general assumption that gold prices are unlikely to fall further.

GJF notes that gold and silver sales during Dhanteras remained extremely upbeat this year. With the advent of wedding season in the country, gold demand is expected to stay robust during the entire last quarter of 2014.