10-15% Rise Expected in Diwali Festival Jewelry Sales

Record gold prices are not expected to deter Indian consumers from purchasing jewelry during the festive Diwali season, according to a number of jewelers and industry bodies.

World Gold Council (WGC) vice president Shivram Kumar predicts a 10-15% year-on-year increase in demand. According to him, “Gold has been considered a traditional gift in India, and is also the best bet as a hedge against inflation.”

Last week, on the Guru Pushya Nakshatra (the day for new ventures), which is considered an auspicious occasion in India, jewelers reported fair demand. Rajiv Popley, director of jewelry chain Popley & Sons, told Reuters, “Consumers are purchasing the same amount in terms of their budget, but the quantity may be less."

Rahul Gupta, director of Delhi based P.P. Jewellers, told Reuters, “The impact of prices has mitigated because of the festival season demand."

The ‘Festival of Gold’ exhibition organized by MMTC in Delhi in early November saw a good response from younger consumers.

MMTC General Manager (Hyderabad Division) J Kishan told PTI, “Instead of purchasing jewelry for investment, consumers today buy ornaments that are in vogue."

MMTC General Manager (Goa division) SN Nayak was quoted saying, “Gold and diamonds studded with rubies, jade, turquoise and pearls are in great demand this festive season."

A Gitanjali manager said, “The demand for diamonds is increasing since gold prices keep fluctuating.”

The Gitanjali Group and MMTC are jointly holding a gold and diamond jewelry exhibition November 6-9 in Delhi, the last few days of the festival season. Titled ‘Shuddhi’, the exhibition offers consumers fully certified and hallmarked jewelry.