The Hindu calendar of this year has a bad news for wedding marketers. While the first-quarter of 2015 witnessed a rise of 15% demand of
gold compared to the same period of previous year, the second-half of the year won’t be a good one for gold traders and jewelers.
Reports suggest that due to a 40% drop in auspicious wedding dates in the second-half of 2015, retailers and gold dealers believe that the demand for gold may drop between 15-25% in the coming months.
Ketan Shroff, spokesperson of
India Bullion and Jewellers Association told ET, "The number of auspicious days for wedding is less this year, which will definitely dent the demand of gold jewellery during the second half of this year. If prices correct at Rs 25,000 per 10 gm-level then the impact will be little less as people will still buy despite wedding dates being less. In that case,
jewellery demand will drop by 1015%. But if price remains at Rs 27,000 per 10 gm-level then jewellery sales will come down by 25% in the second half."
Despite the entire hullabaloo in the markets, it has been observed that
gold market remains muffled and that if price remains at Rs 27,000 per 10 gm-level then jewellery sales will come down by 25% in the second half. However, if
gold price comes down to Rs 25,000 per 10 gm-level, we can still hope that people may buy gold despite wedding dates being less.
Saurabh Gadgil, managing director, PN Gadgil Jewellers, is expecting some relief in the Adhik month. He told ET, "Less number of wedding days will definitely affect jewellery sales. However, we are pinning hopes on the Adhik month which begins on July 15, when the father-in-law gifts gold items to son-in-law. Hopefully, that period will bring some relief to the trade."
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