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Cash flow issues take the glitter off jewellery sales

Cash flow issues take the glitter off jewellery sales

Oct 13, 2017


As the festive season sets in with Pushya Nakshatra on Friday, jewellers hope to revive demand gold jewellery, which had slackened, especially after implementation of Goods and Services Tax (GST). However, it appears that muhurat purchases may not help revive jewellery sales this season, as estimates by bullion traders and city-based jewellers indicate that gold jewellery sales on Friday on account of Pushya Nakshatra will decline by at least 30% against last year's Pushya Nakshatra."The gold market is significantly dull this time around and sales will not clock even half of what it was last year. The cash flow in the market and with consumers is very limited. While people will purchase gold on a good muhurat, the investments won't be major," said Haresh Acharya, secretary, Bullion Federation.


Jewellers blame the slackened demand for gold on the after effects of demonetization and GST that led to cash flow issues. "Sales were slow for quite some time. However, in the past week, there has been little movement in the market. We hope muhurat purchases and a good number of auspicious wedding days would drive up gold jewellery sales," said Shanti Patel, president, Gems and Jewellery Trade Council.Bullion traders estimate that less than 200kg gold will be traded on Friday across Gujarat which is significantly less than last year's 300kg on Pushya Nakshatra. Hefty discounts along with various offers have been rolled out by jewellers across the city to woo customers.



"Muhurat purchases are good year after year and to make a better value proposition for the customers, we tend to introduce festive offers. This time around, there are flat discounts on making charges ranging from 30% and upwards," said Manoj Soni, a city-based jeweller."Considering the wedding season, we've also offered discounts on heavy sets and diamond jewellery," he added.


Source: https://timesofindia.indiatimes.com