Tamil Nadu: High prices dampen gold jewel sales post Deepavali
Every year, there used to be brisk business in jewel shops for at least 15 days after the festival,” said B Muthuvenkatram, president of Coimbatore Gold Jewellery Manufacturers Association.
COIMBATORE: The hopes of jewellers for an uptick in sales of gold jewellery post Deepavali were shattered due to high prices of the yellow metal.
“A usual surge in sales of gold jewels after Deepavali is missing this year due to high prices. People splurge on other priorities before the festival. Whereas, after Deepavali, they prefer buying gold jewellery as an investment option with the money saved from their ‘bonus amount’.
Every year, there used to be brisk business in jewel shops for at least 15 days after the festival,” said B Muthuvenkatram, president of Coimbatore Gold Jewellery Manufacturers Association.
However, the jewellers lamented that sales had been poor so far on the days prior to and after the festival.
“For us, the ‘real’ Deepavali season sales would pick up only after the festival. But it’s not so this year as people are hesitant to buy gold due to a sharp increase in its prices. It’s not even 50 per cent of the usual sales. Business will rebound only if prices fall. Prices have begun to drop, and a further downfall may bring back the customers to shops,” he added.
Workers have gone to their hometowns and are on an extended holiday due to the absence of work.
“The workers are likely to return from Monday. Even if they return, they would get only 50 per cent of the usual work. Of the 45,000 odd workers, almost 20,000 are migrants from north Indian states, and others are from across Tamil Nadu,” say gold jewel manufacturers.
The jewellers hope that the gold jewellery industrial park, to be established with an investment of Rs 126 crore in Kurichi SIDCO, will be a boon to Coimbatore, a hub of the gold jewellery industry.