Gold traders in Chennai are an upset lot with retail demand for jewellery diving to a record low. For the first time in the last two years, gold jewellery demand has dipped by over 30 per this quarter.
And with economic conditions showing little signs of improvement, retailers are not hopeful of the ensuing festival season adding any spark to their sales.
“Economy is not doing well, prices are on the higher side, customs duty on gold imports has gone up and rupee is depreciating.
There is little enthusiasm,” laments Mr N. Anantha Padmanabhan, president of Chennai Gold Club.
Usually the second half of calendar year, which has host of festivals lined up, peps up gold sales in the market.
However, this year traders do not foresee any huge jump in sales following soaring gold pries and weak monsoon concerns.
“Though festivals may add some life to our otherwise sluggish sales, it will hardly be 10 per cent,” says Mr Anantha.
Investment demand for gold is down by almost the same percent. “Investors are not seeing much returns as gold prices are hovering only around Rs 30,000- Rs 30,500 per 10 kg for the last one year. So investors have lost hope,” says Mr Ranjeeth Rathod, MD of MNC Precious Metals.