Gold and silver sales yet to pick up

NEW DELHI: The sparkle in Diwali is perhaps duller this year. Traditionally sought after during festive seasons, gold and silver is drawing lesser buyers and prices have been fluctuating drastically.
According to traders, the price of gold has been varying between Rs 6,500 and Rs 7,000, whereas silver has touched the Rs 11,500 mark compared to 10,000 last year.Wholesale jewellery market in Chandni Chowk has witnessed a downslide in sales as consumers are preferring to wait for prices to stabilise.
"There are lesser takers because of the taxes government keeps on levying at every stage of production. I don't think the sales will pick up, even with Diwali just round the corner, since people are working on tight budgets with escalating prices in every sector," said Priyam Gupta of Jagdishwar Lal Jewellers.
"There has been a decrease in sales. Rate of gold was Rs 7,000 a while back and now has come down to Rs 5,800 in two days flat. Nobody wants to take risk of investing while prices are still fluctuating and are waiting for them to settle at the lowest level. For the past two three days, I have seen no customers," said N K Malhotra of M Raj Sons.
There are others waiting for the market to pick up. "Every time there is fluctuation in the market the uncertainty among the consumers leads to a dip in sales, but eventually it always picks up.
The drastic increase in silver prices this year has prevented people, who normally invest in silver as gift items, from doing so as it is not within their budget," said N K Khanna of Navin Bhushan Bhandar Jewellers.
On the other hand, retailers are attributing the dip in sales to consumers, preferring to invest in property and the share market. The owner of a prominent jewellery store in GK-I said: "Business has definitely gone down compared to last year. This year consumers are investing hugely in the property and share market."
Delhiites are complaining that they have no money left to spare after paying for essential commodities. This year the month end with tight budgets is overlapping with Diwali, specially with prices of almost everything, even vegetables skyrocketing.
Neeru Chanchalani, a housewife, said: "Diwali is the one time of the year when we like to invest in gold but the high prices are really making us think twice. I only hope they stabilise by Diwali, otherwise I will have to settle for steel."
Shubham Joshi, a businessman, who has been gifting silverware to his customers ever year, has been forced to develop a change in taste because of the rise in price of silver. "This year I will be giving gift packs to my customers. But considering everyone is sailing in the same boat, I don't think they'll mind," said Joshi.