Drop in gold prices pave way for renewed demand
THE jewellery market is witnessing a revival in demand as gold prices have declined significantly. In the month of February, gold prices were ruling high above the Rs 34,300-level per 10 grams. At that time, a large number of people postponed their purchases hoping that prices would fall to more realistic levels. Now, these people have got an opportunity to buy jewellery as gold prices have declined by Rs 1,200 per 10 grams and silver by Rs 3,000 per kilo.
“With fall in gold prices, there has been a revival in demand of jewellery. The main reason for the fall in gold prices is due to the strengthening of rupee against the US dollar. On Monday, the rupee closed at 69.89 against the US dollar. A month ago, the rupee was hovering above the 73-mark against the US dollar,” said Kishore Sheth, Director of Batukbhai & Sons Jewellers, Dharampeth while speaking to The Hitavada.
People, who have marriages in their homes, are showing keen interest in buying gold jewellery as the prices have fallen from their last month’s highs. The wedding season will start from April and will continue till July 12. During these months, it is anticipated that demand for gold will shoot up. On Monday, gold was being quoted at Rs 33,100 per 10 grams and silver at Rs 40,000 per kilo in the city. Gold prices in the country are determined at the international level and rupee-dollar exchange rates, he added.
Rajesh Khandelwal, Director of Khandelwal Jewellers, was of the same opinion and said that there has been a revival in demand by 10 per cent compared to last month due to fall in gold prices. If gold continues its slide, then the demand could shoot up even further. Karan Kothari, Director of Karan Kothari Jewellers, said that there has been a slight improvement in gold demand compared to last month. With gold prices melting, customers are willing to buy at these levels.
Sachin Vastani, Director of Dass Jewellers, Impressa Rise, Shivaji Nagar, said that there has been a slight up-tick in gold demand as prices have dropped by Rs 1,200 per 10 grams. Investors are still waiting as they are expecting
gold prices to fall even further from these levels in the coming months.Shrikant Bhandarkar, Director of Bhandarkar Jewellers, said that his shop is witnessing a 10 per cent increase in demand compared to the previous month.