MUMBAI: The glitter of fairy lights adorning jewellery showrooms reflects an upbeat mood as the five-day festival of Diwali begins on Friday. Goldsmiths are looking forward to optimal sales at Dhanteras despite the lockdown effect and the fact that the yellow metal has scaled an all-time high of Rs 50,000 per 10 gm.
Samir Shah of Manubhai Jewellers at LT Road in Borivli, said, “Gold jewellery bookings are at a modest growth QoQ (quarter on quarter) currently at our store. Not only gold buyers, even diamond jewellery buyers are showing a surprising surge in booking to ensure they don’t miss out the auspiciousness of Dhanteras.”
Shah makes an interesting observation about why people are choosing to invest in gold despite high prices. “There was a drop in households’ consumption expenditure as a result of the lockdown, which has in fact led to higher savings. Also, there are weddings lined up which had been pushed back due to Covid-19, and those customers are out for an aggressive search of gold and diamond products,” he said.
Buying is under way in full swing for the upcoming wedding season, which begins on November 21, said Kumar Jain, vice-chairman of Shri Mumbai Jewellers' Association. He said, “Many marriages are scheduled in the coming weeks. Last year, there were 71 mahurats. This year, there are 103. On Dhanteras 2019, the price of gold was Rs 39,515 per 10 gm. This season it is Rs 10,000 more. But high rates are not an issue for people who want to buy.”
In the jewellery hub of Zaveri Bazar, Dhirajlal Bhimji Zaveri. has witnessed an early demand for gold coins or bullion.
“Jewellery involves additional cost of making charges, so that is a deterrent for customers who wish to invest. But wedding buyers are opting for chains, rings, pendants and mangalsutra,” said owner Deepak Zaveri.
On Wednesday, Shilpi Jewellers in Lokhandwala Complex, Andheri, saw customers arrive to select rings and danglers in the range of Rs 10,000-15,000. Pravin Mirkar, owner of Mirkar Jewellers in Borivli, though, reported few footfalls so far and has his fingers crossed for festival day.