Jewellers see no sparkle in sales this Dhanteras

Vijay C Roy

Tribune News Service

Chandigarh, October 17

The auspicious occasion of Dhanteras has failed to steer the sales of gold and silver in retail market in the Northern region. Jewellers said they have witnessed a decline in sales to the tune of 30-35% this year as compared to last year.

They added that this can be gauged from the fact that gold price was subdued today even on the auspicious occasion of Dhanteras. Generally, on Dhanteras, the rates of gold and silver keeps increasing but this time since the past 4-5 days, the rates are almost same. The gold was quoted at Rs 30,800 per 10 grams (24 carat) and silver at Rs 42,000 per kg.

“Overall, the sentiments are not encouraging. According to rough estimates, there has been a decline in sales to the extent of 30-35% by the retailers,” said Shashi Kamal, Sunam-based jewellery manufacturer. People lament they have no money to buy gold due to massive increase in prices of essential commodities. For them, gold is a luxury and the last priority. Echoing similar sentiments, Panipat-based wholesalers said overall there was decline in sales. To mark the Dhanteras, people were seen buying silver than gold.

Pankaj Arora, National Chairman, Jewellery Division, Confederation of All India Traders (CAIT), said, “On the basis of current feedback received from across the country, there has been a decline in sales mainly because of liquidity crunch. The levy of transaction charges on credit and debit cards is another dampener which is affecting the sales after demonetisation.”

Praveen Khandelwal, Secretary General, CAIT, said, “Agriculturalists suffered losses due to price drop in agri commodities, higher establishment expenses and subsequent increase in working capital of traders and MSMEs, the atmosphere of uncertainty has prompted the salaried class to keep funds reserve. These are some of the facts which have blocked the cash liquidity from the markets.”

Khandelwal further said e-commerce portals had also hit the brick and mortar markets. He said confusion and chaos among the traders with no preparedness for GST, complicated taxation system coupled with overlapping laws were other reasons responsible for the decline in sales. Under such circumstances, both consumers and merchants are confused to a great extent and preferring to withhold the purchases for more time which is resulting into low footfall of consumers in the markets.

Not only the sale of gold and silver, but the sale of utensils and kitchenware and appliances is also on the downside. “The economy is going down so job losses are apparent in the market. There is liquidity crunch in the market, so people are buying the commodities which are essential,” said a Chandigarh-based trader.