The Gold sellers are now in a doubtful phase if their sales will hit the ceilings this Diwali or not. Some sources say that the trend cannot be predicted too quick as the entire sales can be predicted only this weekend. The yellow metal market is facing a downside due to the GST roll out. The customer side is facing issues like lack of money whereas the seller side is facing issues like the market that has been lost due to the rules of anti-money laundering being imposed that would never let in the money that has been sourced out from the negative methods to circulate into the markets.
The relaxing of the Know your customer norms up to those who purchase gold worth 50000 is definitely laudable as the Dhanteras is the day of buying the auspicious metal be it any quantity. This is sure to attract the middle class and the upper-middle-class crowd who make it a point to buy at least a small amount of jewelry to add to their homes as a part of their tradition. The auspicious days are also the times when a major chunk of the Indian population usually ventures out to buy jewelry. The jewelry sellers are expecting crowd from those who have planned for marriage as the marriage season is fast approaching.
The shift of the crowd from the jewelry to the electronics side can be stated as the absence of EMI option when it comes to purchasing jewelry. The jewelry purchases, only a few like 18-carat gold, stones like diamond and platinum and not the 22 and the 24-carat jewelry can be availed of the EMI option. Not many buyers are affluent enough to purchase the costlier items. The lending of the 22 and 24-carat gold via the EMI option will only result in loss of the buyers. The sellers are looking forward to a profitable Diwali this year as the sales should meet the imports. The quarter before the rollout of GST saw some customers pouring in that were a huge sigh of relief for the jewelry sellers especially after the dull in business during times of demonetization and note ban.
The rates of the gold have also not increased that much when compared to the rates last year, and that makes the investing of the amount in Gold to be a big question in the customer’s mind. The jewelry sector that is only 30% organized is yet to see the results of the Diwali’s big picture that will be revealed in the weekends.