After witnessing a lacklustre demand for gold in the last few months, jewellers in the city now find the business picking up gradually.
With the price of 22-carat gold hovering between ₹2,701 and ₹2,721 per gram from May 11 to 17, jewellery shops are recording sizeable footfalls.
Merchants say jewellery sales dropped by almost 50 % as buyers preferred to stay away from making any big purchases unless it is required.
“Most of the people have made only casual purchases such as bracelets, chains and ear studs. As a result, there is a drastic fall in the business across the stores in the city. However, slight variation in the gold rate for the last few days provided respite to an extent. But the buying pattern among clients continues to be sluggish,” says Kandula Nagaraju, former vice-president of Gold and Silver Merchants’ Association.
Post demonetisation, Akshaya Tritiya was the only time that turned out to be a boon as they could make brisk business, jewellers said.
“Irrespective of the gold value, there was a sharp increase in the sales during Akshaya Tritiya. This year, the sales had gone up to 10% at the outlet. But the biggest challenge is sustaining the momentum after the festival season. Despite the drop in gold prices, people are making only occasion-based purchases,” says G. Balaji, store manager of GRT Jewellers.
Many jewellery retailers feel there is a slight improvement in the business over the past few days due to a fall in gold prices. However, the overall sales in a majority of outlets remain dull as jewellers say the buyers are expecting further drop in the price before making any big purchases.
