With the beginning of marriage season and declining prices, gold is likely to glitter more than usual in the days ahead as traders feel that sales of gold jewelleries may go up by as much as 25%.
"The season (marriage) has just begun and it is too early to say much, but there is tremendous potential for business. The sales may go up by 20-25% cent this year as against last year," said Bachhraj Bamalwa of Kolkata-based Nemchand Jewellers.
The precious metal prices, which had touched a low of $ 686 an ounce during the last week of October, was today placed at $ 737.65 an ounce.
In the domestic markets, gold price was seen at Rs 11,850 per 10 grams level.
However, going by the traders' opinion, the buyers have a feeling that the best is yet to come. "The customers are still waiting for the right time and for the prices to decline further.
As the season will proceed the sales will definitely pick up," said another Delhi-based jeweller. But Haresh Soni of Premji Jewellers, who have stores in Gujarat, Mumbai and Gurgaon, said, "Due to money crunch in the market, customers are not buying any extra items and limiting their purchases."
The momentum has just started, since Monday, after the Diwali holidays, said Dinesh Jain of P M Shah Jewellers. "We are expecting a 25% increase in sales during this year's marriage season," he added.
Suresh Verma of Om Sons Jewellers pointed out that it all depends on the price. "If gold price goes up it will affect the business."
6 months ago