Mumbai: Markets remain lackluster as gold sales pile up on Ganesh Chaturthi amid high prices
Gold prices are skyrocketing in Mumbai, with figures of Rs 38,420 per 10 grams as of August 30. This has caused gloom in the market as customers are reluctant to buy gold even as the Ganesh Chaturthi festival is fast approaching.
Kumar Jain, vice president of the Shri Mumbai Jewelers Association, says trade tensions between the United States and China are not a good signal for the market. The weakening of the rupee against the dollar and a general slowdown in the economy had negative effects. In the past three months, gold prices have crossed the 40,000 rupee mark.
Jain also believes that by the time Diwali arrives in the city, there could be a further appreciation of Rs 2,000 to Rs 2,500, with gold prices crossing Rs. 42,000 points.
Even during Rakshan Bhandhan, there was no response from customers. People usually have sentimental value attached to gold during festivals but the Rakhi festival has turned cold for jewelers.
Ganesh Chaturthi is a big festival in Mumbai. People consider buying gold to be a must for this festival. Gold sales this season have fallen dramatically by 70 to 80 percent, according to Mumbai jewelers.
Orders received for gold are much lower. Even the various Ganpati pandals haven’t substantially commanded this year. Ganesh’s various pandals receive money through advertisements and banners but this time due to the downturn in the economy, they haven’t received a lot of donations.
Many of the city’s pandals haven’t even received a single announcement and as a result their decorations have also been reduced.
India Today TV visited the famous Zaveri bazaar area in Mumbai to find out about situation zero. Overall the area was very drab. The regular enthusiasm was clearly lacking.
Vrishank Jain, CEO of Umedmal Trilokchand Zaveri, said: “In general, I have many builders who come looking for gold items like gold chuda screams, gold modak, gold necklaces, but this time , these orders were much lower. “
Vrishank also said: “The common man also buys simple pendants and coins. The common man does not have the budget to handle such high prices. Usually people know about the rising prices, but when they come to the jewelry stores, they are shocked. “
The women, who have saved over the years, put their savings to buy symbolic gold for the Ganpati festival. The trend is now slowly moving towards silver and people prefer other metals to gold.
Madhu Dalmia, a resident of Labagh said: “Ganesh Chaturthi is a very auspicious festival and it is considered very good to offer gold to Lord Ganpati. yes I will buy for the festival. “
Anshu, a resident of Dadar said, “I think I’ll buy some gold-plated ornaments that fit my budget, but I have to buy something. Even if it’s less, it’s fine, but there must be something. It’s a tradition in the family and I have to do something. “
Alka, a resident of the Parel district, was nevertheless clear in her thoughts. She said this year that she will not be able to offer anything but that she will compensate next year. “This time I’m going to buy the silver and that’s it,” she said.
A youth from the Labagh area said: “Ganpati does not ask for any donation. He blesses everyone the same way. I think looking at gold prices I’ll stick to only offering modaks this year.
Enthusiasts may have prioritized what to buy, but market experts say so far they see no signs of a recovery. The fear is that even though Dusherra, Dhanteras and Diwali are around the corner, there is no positive sentiment in the market.
The whole holiday season could be wiped out. “If things stay the same as the customers, we will only have those who need gold purely for marriage purposes. The market certainly expects a miracle to happen,” Kumar Jain concluded. .