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Dhanteras Shows Quiet Slowdown By 40%

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Mirroring slowdown in the economy, pre-Diwali Dhanteras sale of gold and silver dipped
 

Dhanteras, considered the most auspicious day in Hindu calendar for buying items ranging from precious metals to utensils.Traders complaining of lesser footfall and reduced consumer spending and the business decline from 35 to 40 per cent increases major worry for the traders, reason felt was liquidity crunch.

 

The gold prices rose by Rs 220 to Rs 39,240 per 10 gram in the national capital, up by 20 per cent compared to 2018 Dhanteras when the rates stood at Rs 32,690 per 10 gram and about 6,000 kg of gold worth Rs 2,500 crore was estimated to have been sold till evening on Dhanteras day, as against 17,000 kg of gold worth Rs 5,500 crore on this auspicious day in 2018, as per Confederation of All India Traders (CAIT).

 

“As per an estimate, there was a decline of business from 35 to 40 per cent which is a cause of major worry for the traders,” CAIT’s Gold and Jewelery Committee Chairman Pankaj Arora said in a statement. Sales were down as prices of both gold and silver have sharply increased from over last Dhanteras, which has weakened the demand, he said, adding it was perhaps the “most disappointed Dhanteras” for the traders in past more than 10 years.

 

Jewellers’ apex body All India Gem and Jewellery Domestic Council (GJC) chairman Anantha Padmanaban said, “In volume terms, we expect sales to be 20 per cent less than last year. In terms of value, it will be same as last year because of higher prices.” Most consumers are going for token buying of lesser value and are waiting for price correction for purchase of wedding jewellery, he said and eyeing with a hope to recover during the wedding season in the coming days.

 

“As the purchasing power has come down, we can see de-growth in the range of 10-15 per cent in sales quantity. However, in terms of sales valuation, it may remain same as that of last year as the gold prices are high and another reason is “The sharp rise in the gold price and deep discount in the bullion market impacted trade and the consumer outlook in Q3, however, Dhanteras seems to have changed this as had been expected.”

 

“Gold rates at Rs 39,000 per 10 grams was much too expensive for people. There was shift to silver coins,” he said. MMTC-PAMP said its silver coin sales rose 15 per cent over last Dhanteras, while gold coin sales remained sluggish. With gold prices being at an all-time high, digital gold buying medium provides buyers the liberty of buying gold as low as Re 1 and this flexibility is gaining ground.

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