Dhanteras gems and jewellery sales may cross Rs 30,000 cr amid rising prices
PTI
Dhanteras and Diwali demand for gems and jewellery this year is anticipated to remain strong despite rising prices, with Diwali sales potentially crossing Rs 30,000 crore in the domestic market, according to industry experts.
Price hikes in precious metals are prompting consumers to view gold as a reliable asset, while silver is gaining popularity among people due to its relatively lower price and high industrial demand. Some experts estimate sales growth in value terms of 10-15% year-on-year this Diwali across the country, though there may be a dent in volume.
Silver has emerged as the top performer with returns exceeding 40%, followed by gold at 23%, significantly surpassing stock market benchmark returns.
Eastern Regional Chairman of the Gems & Jewellery Export Promotion Council (GJEPC) said, “Gold continues to shine due to global uncertainties and geopolitical conditions, while silver is drawing substantial interest as an affordable option.” The Council also noted a shift from diamonds to gold this year, as the popularity of lab-grown diamonds has impacted the demand for natural diamonds.
Ashok Bengani, President of the Ankurhati Gems and Jewellery Manufacturers Welfare Association, highlighted industry efforts to reduce import duties to boost market sustainability.
“The geopolitical situation underscores the need for visionary leadership from the Finance Ministry to reduce import duties by 9%, from the current 15% on gold imports, making it easier for the market to thrive,” he said. “This Dhanteras and Diwali season, sales are expected to cross Rs 30,000 crore, despite some decline in volume,” Bengani added.
Suvankar Sen, MD & CEO of Senco Gold Ltd, noted that higher gold prices may slightly impact sales volume, estimating a 12-15% decline in volume. However, value-wise, he expects a 10-12 per cent increase.
“The addition of lower 9Kt purity and lightweight gold jewellery options has expanded demand opportunities, especially among working women,” he said.
Price hikes in precious metals are prompting consumers to view gold as a reliable asset, while silver is gaining popularity among people due to its relatively lower price and high industrial demand. Some experts estimate sales growth in value terms of 10-15% year-on-year this Diwali across the country, though there may be a dent in volume.
Silver has emerged as the top performer with returns exceeding 40%, followed by gold at 23%, significantly surpassing stock market benchmark returns.
Eastern Regional Chairman of the Gems & Jewellery Export Promotion Council (GJEPC) said, “Gold continues to shine due to global uncertainties and geopolitical conditions, while silver is drawing substantial interest as an affordable option.” The Council also noted a shift from diamonds to gold this year, as the popularity of lab-grown diamonds has impacted the demand for natural diamonds.
Ashok Bengani, President of the Ankurhati Gems and Jewellery Manufacturers Welfare Association, highlighted industry efforts to reduce import duties to boost market sustainability.
“The geopolitical situation underscores the need for visionary leadership from the Finance Ministry to reduce import duties by 9%, from the current 15% on gold imports, making it easier for the market to thrive,” he said. “This Dhanteras and Diwali season, sales are expected to cross Rs 30,000 crore, despite some decline in volume,” Bengani added.
Suvankar Sen, MD & CEO of Senco Gold Ltd, noted that higher gold prices may slightly impact sales volume, estimating a 12-15% decline in volume. However, value-wise, he expects a 10-12 per cent increase.
“The addition of lower 9Kt purity and lightweight gold jewellery options has expanded demand opportunities, especially among working women,” he said.