The first day of the Hindu New Year Vikram Samvat (2080) is celebrated as Gudi Padwa in Maharashtra. Shopping for jewelery is considered auspicious on this day in Maharashtra. This is the reason why today there is a crowd of buyers in gold and silver showrooms. Due to costlier gold, the sale of jewelery on Gudi Padwa this year was less than expected. Sales were down about 20 percent compared to last year. Along with jewellers, builders have also brought special attractive offers for this day, which are expected to book well.
On the first day of Navratri (Gudi Padwa), gold prices fell to Rs 58,402 per 10 grams. Yesterday on Tuesday, the price of 10 grams of gold had closed at Rs 59,188. Despite the decline, gold is costlier by about 14 per cent compared to last year. Last year on April 2, on the day of Gudi Padwa, gold was selling at Rs 51,431 per 10 gram in the domestic market and silver was selling at Rs 66,889 per kg, while today silver was Rs 68,221 per kg. Due to high prices, people made purchases according to tradition but sales were less than expected.
Despite the high price of gold, customers reached the jewelers in good numbers to make purchases. According to Kumar Jain, secretary of the Mumbai Jewelers Association and owner of Umedmal Tilokchand, jewelery sales are likely to decline by 40-50 per cent this year as gold prices in the Indian market hit a record high. Buyers are waiting for some correction in prices to start fresh purchases. Kumar says that in terms of value, there is a possibility of Rs 375-400 crore worth of jewelery being sold in Maharashtra this year as against Rs 450 crore worth of jewelery sold last year.
Raman Solanki, director of Sangam Jewels N Gold LLP, a gold wholesaler based in Mumbai’s Zaveri Bazar, says demand is likely to drop drastically during this festive season and sales are likely to drop by 50 per cent due to higher prices. Long-term investment demand for coins and bullion is expected to remain the same as last year.
However, due to the wedding season, jewelers are expecting sales despite higher gold prices. Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers, said that considering the number of weddings in the country till July 15, we expect a 20 per cent growth in business as compared to last year. On the other hand, some jewelers say that customers who have weddings in their families are exchanging old gold ornaments for new ones, while sales of new ornaments are very low. Somasundaram PR, CEO of the World Gold Council, says that this year Gudi Padwa is being celebrated even when gold prices in the domestic market are rising towards a historic high. Pricing pressures may keep rural demand weak. Urban shopping and digital gold will also be affected.
Colin Shah, former chairman of the Gems and Jewelery Export Council, said that gold prices have touched a record level of Rs 60,000 per 10 grams during gold trading in the Mumbai market. Gold prices have increased by around 7-8 per cent in the last one month. The boom is mainly due to the banking crisis in the West. The current situation globally may take some time to become clear. Globally, central banks are also increasing their gold reserves. In the next few months, gold will accelerate further and touch new highs. In the domestic market, it is expected to trade in the range of 61,000-62,000 per 10 grams. In the international market, the yellow metal may move towards the levels of $2,050-2,100 an ounce.
On Gudi Padwa, jewelers gave excellent offers ranging from 10 percent to 100 percent discount on making charges, while developers have also come up with more than one tempting offer for home buyers in their projects. In which there were stamp duty exemption, free parking, furniture etc. Although the sales figures of the houses could not be found, but the builders are claiming that this time the sale of houses is more than last year. It may be noted that all government offices, including the Stamp Duty and Registration offices, remain closed during Gudi Padwa as a public holiday.
Gudi Padwa festival is celebrated with pomp in Karnataka, Telangana and Andhra Pradesh including Maharashtra. It literally means the first day of the new year. Gudi Padwa is a Marathi word, which is made up of two words. Gudi which means the flag of Lord Brahma which is considered a symbol of prosperity. And Padwa means phases of the moon.
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