New Delhi: People flock to a jewelry store on Tuesday on the day of the biggest gold purchase this year, with the period of bumper sales for precious metals that peaked at the Diwali festival expected for the first time since the pandemic began.
Dhanteras is traditionally seen as the most profitable day in the Hindu calendar to buy gold, with many shops left open until midnight and jewelry offers discounts and gifts.
People usually buy ornaments for wedding celebrations, and coins and bars for investment surge during a series of celebrations that peak with Diwali, or festivals, which fall on Thursday.
However, in the past two years sales have been subdued.
While restrictions and fear towards Coronavirus in the middle of a weak economy and high prices have taken victims, jewelry now seeing healthy demand growth.
Tata Group Tata reported an increase in revenue of 77% from year to year in the jewelry division in three months to 30 September, which is usually a period of Lean request due to rain and lack of festivals.
According to the chief executive jewelry company, Ajoy Chawla, people are finally more comfortable with expenses and demands led by high wedding.
“All segments witnessed a very good upsurge request, whether it was a lower price segment or a higher price, gold jewelry or diamond-studded jewelry,” Chawla said in an interview with Bloomberg Television.
The jewelry sector also benefited because the travel and other discretionary expenditures were still being bought because of a pandemic, with gold appealing to many people who saw it as a value shop, he said.
Other jewelry also enjoyed a more prosperous festival season in 2021.
MMTC-PAP India, a business between the MMTC managed by the state and SA-based PAPS, has seen increasing demand for its products from the end of September, according to the management of Director Vikas Singh .
‘Running out of stock’ “I spend almost every day talking to Geneva saying ‘send me further, send more’,” Singh said.
“Gold is out of stock.
Silver runs out of stock.” The only London London Bullion Moultious Metals Reservious Metals Refiner and Mint has recently started diversifying his portfolio from selling bars especially to bar dealers to set up a physical store for coins and bars for retail investors.
“Our consumer’s journey has become an absolute sale,” Singh said.
“With economic volatility, more and more people want to invest part of their portfolio in gold and silver.” WHP Jewelers, who have shops in Maharashtra, Madhya Pradesh and Goa, exceeded their sales target for Dhanteras by 35%.
Other jewelry at Uttar Pradesh “overwhelmed” by footsteps this year and the world gold council pegok Diwali is one of the best in the past few years even when the pre-covid period.
Bengaluru based in Krishniah Chetty Group of Jewelers has increased 65% in sales that lead to Dhanteras compared to the pre-pandemic level.
“We actually can’t keep our inventory full because more sales than production,” said Managing Director C Vinod Hayagriv.
Production delays due to covid protocols, testing, and backlogs that confiscate also cause difficulties in keeping inventory in line with demand, he said.