Gold retains its sheen during ‘dull’ Aadi season

Aadi, usually considered an inauspicious month for the retail sector, especially that of gold, has not dented the sales of jewellery in this part of the country. 

Princeson Jose of Prince Jewellery, says the glitter trade happened to be the least impacted due to GST as it came in the lowest category of taxes unlike the four slab tax percentage rates of 5, 12, 18 and 28 for various goods and services. “Gold prices have been going up and it bears the lowest GST rate as far as the jewellery segment is concerned. Therefore, there has been no reduction in sales. In fact, we have even introduced a special offer to attract customers during Aadi. Unlike last year when we provided discounts of Rs 600 per sovereign, this time, we have offers based on grammage – Rs 65 per gram is the discount for Aadi purchases made from July 15 to August 15,” he said.

Other are opting for the tried and tested route of pairing gold with household essentials, with a view to take advantage of the jewellery buyers and homemakers alike. R Vijayaraghavan, CEO, GRT says there has been a ‘slowdown’ of sorts during the pre-GST period while sales were affected only marginally in the Aadi season. But thanks to promotional campaigns and surprise giveaways, customers seem to be thronging the stores even during this season. “Our sales took a hit of 10 per cent in the wake of the GST and commencement of Aadi. Although, things are returning to normal gradually. The kitchen items that we have been gifting to our customers have been received well, especially among ladies,” he said, noting that the GST transition from a business perspective had been smooth. 

With gold rates rebounding at the domestic bullion market, thanks to a strong offtake from investors and jewellers, the “inauspicious” period seems to have not dented the confidence of those in business.

Standard gold (99.5 purity) surged by Rs 100 to finish at Rs 28,540 per 10 grams from last Friday’s closing level of Rs 28,440. Pure gold (99.9 purity) also rose by a similar margin to end at Rs 28,690 per 10 grams as compared to Rs 28,590 earlier.