The occasion of ‘Dhanteras’ considered auspicious in India has brought about some relief to the jewellery market which has largely been subdued amid the pandemic with poor demand.
Although gold prices have been hitting the roof and setting new benchmarks in the past few months, but that has largely been on the back of investment demand. Consumer demand for gold jewellery has been tepid, and jewellers have been pinning their hopes on festive season of 2020 to garner back the lost demand.
Somasundaram PR, Managing Director for India at the World Gold Council noted that the price rally of 29 per cent this year adds to the momentum of the tradition of buying gold in varying forms and quantities in Dhanteras.
“It has been a challenging year but it appears that Dhanteras could mark a new beginning with gold leading the way in reviving consumer confidence and positive sentiments, reinforcing the widely held belief,” he said.
Somasundaram, however, said that the challenges of lockdown have not gone away, and the expectations remain tempered by the fact of high and volatile prices, persisting anxieties of small businesses and unorganised workforce, and a general caution in the air about covid.
“Organised players with meaningful tech interface and better response to emerging buying behaviours, and digital gold platforms promoting micro savings and safe gold accumulations, are expected to do well,” he said.
C. Vinod Hayagriv, Director and Managing Director, C. Krishniah Chetty Group Of Jewellers said that the company is expecting a 20-25 per cent revival during Dhanteras and Diwali festive season.