Gold loses lustre on Dussehra, Covid-19, high rates crash sales by 35% in Maharashtra

Dussehra turned out to be a lacklustre one for jewellers on Sunday as gross sales of gold, silver and diamond jewelry fell by a staggering 35% in Maharashtra in comparison with final 12 months.

The raging Covid-19 pandemic, hefty hike in gold and silver charges together with lack of enthusiasm among the many consumers have been the primary purpose for the autumn in gross sales, jewellers mentioned.

According to Mumbai Jewellers Association (MJA), the apex physique of the jewellers, the gross sales on Dussehra clocked Rs 325 crore. “We normally generate a sale of Rs 500 crore during Dussehra. However this year, we saw a massive decrease in sales,” mentioned Kumar Jain, Vice President, MJA.

He mentioned one of many main causes was the exorbitant enhance in gold and silver costs in comparison with final 12 months, apart from the overall slowdown brought on by Covid-19 pandemic. Gold now prices Rs 52,960 per 10 grams in comparison with Rs 38,079 in the course of the 2019 Dussehra. Similarly, silver is now priced at Rs 62,500 per kilogram in comparison with Rs 39,788 per kg on 2019 Dussehra day.

“This made gold and silver unaffordable which has resulted in decrease of sales this year,” mentioned Jain.

Dussehra is among the festivals the place shopping for of gold is taken into account as an auspicious signal. This 12 months most customers targeting shopping for 1 and a pair of grams of gold and silver cash as an alternative of jewelry.

According to Ishu Datwani, Founder, ANMOL Jewellers, one of many main gold shops in Mumbai, Covid-19 has performed a spoilsport. “Our sales have fallen by about 50-60% compared to the previous year,” rued Datwani.

Nilesh Chandaliya, proprietor, Pramanik Jewellers at Parel blamed the shortage of transport for the slowdown of gross sales. “We used to get consumers from distant suburbs but this time they were unable to come due to lack of trains,” mentioned Chandaliya. “In addition, many people have lost their jobs or have got pay cuts. This has impacted their buying capacity,” he added.

Consumers additionally rue the state of affairs. Promila Hunter, a hair stylist who lives in Goregaon says this was the primary time she didn’t buy any gold on Dussehra. “I have been without work for the last seven months and hence without any income. It was impossible for me to buy any gold this time,” mentioned Hunter.

Gold performs an vital position for Indians, particularly throughout weddings and different festivals. Four festive days are thought of particularly auspicious to buy gold in India — Gudi Padwa, Akshay Tritiya, Dussehra and Dhanteras. India is among the largest markets for gold commerce and the world’s second largest importer of the yellow metallic.