Wedding season, Diwali festival shine light on gold sales in final quarter of the year
The Covid-19 pandemic had not augured well for the bullion sector in the country, as was the case with every industry segment. However, things seem to be set for a shine as the pandemic is on the wane. There are signs that point at a lucrative sales leaps ahead, and this has prompted gold jewellers to bring that long-forgotten smile back.
The pandemic had forced Indian bullion buyers to tighten their purse strings as they never knew what was lying ahead. The spending almost came to a halt, with festivals, weddings and other festivities went on mute mode. With reports of a low rate of coronavirus spread, coupled with a good rate of vaccination across the country, jewellers are adding some push to their hopes of a better sales season.
Diwali, weddings set to spur sales pick-up
Historically speaking, Indian yellow metal buyers tend to go on a purchasing spree during the last quarter of the calendar owing to the wedding season, and the Diwali festival. Ornaments, gold coins, gold bars see more pickups during this quarter.
Though the last two years had dumped this habit to the corner with restrictions in movement, get-togethers and celebrations, thanks to the pandemic situation, the coming days are expected to paint a different picture.
Another factor that would spur buyers to flock to gold jewellery stores and the bullion market is the nosediving of prices. A look at the numbers would reveal that prices had dropped by at least 17 per cent after they had posted a record high in August last.
Gold prices plummet, demand soars
With demand set to join hands with the low prices, the final quarter gold sales could take a leap by at least 15 per cent more than what had been recorded during the same period a couple of years ago.
A report quoting World Gold Council data has pointed out that Indian jewellery buyers had purchased 194.3 tonnes of gold during the October-December festival season of 2019. Also, they bought 186.2 tonnes during the same period last year. Market observers believe that this year around, it is going to be much more as gold prices have dipped. Post-pandemic, the number of weddings is also expected to be higher.