'Jewellery demand may return to pre-Covid level in next fiscal'

Source :IANS
Author :IANS
Last Updated: Thu, Nov 12th, 2020, 13:41:59hrs
Gold Shop Bangles

New Delhi: As the pandemic has severely impacted the gold jewellery market, demand is likely to recover to the pre-Covid levels in the next financial year, according to a stakeholder.

C. Vinod Hayagriv, Director and Managing Director, C. Krishniah Chetty Group Of Jewellers, expects that the festive demand during Diwali will be healthy this year and may near the level of festive demand last year.

"We are now close to last year's sales. The transaction sizes have grown more than last year. Hence, its quite safe to predict Diwali will be healthy. Whether we will beat last year's quantity will be doubtful," he said.

Hayagriv said that its recently launched scheme for Diwali 'Gold's Plan' has been a successful programme.

"Our clients saved big last 12 months. The plan has exceeded expectations of our clients. We believe it's been successful when we have repeated clients renewing the programme by enrolling again under each of their children's names," he said.

Regarding plans in the online front, the MD said that the company will be investing into online segment more over next six months.

A recent Motilal Oswal report said confidence among jewellers has revived in the wake of the strong festive and wedding demand anticipated in the fourth quarter of 2020. Bullion imports during the July-September improved.

Although gold prices surged to new highs amid the pandemic backed by investment demand, consumer demand and sales of jewellery was largely hit over the past six-seven months.

In the domestic futures market, gold is likely to reach Rs 65,000-67,000 per 10 gram on domestic front.