New Delhi, Feb 05: Since the September 11 disaster, not only have gold prices shot up by about Rs 1,800 for 10 grams but also the clouds of war looming over Iraq have worsened the situation. Most jewellers have adopted a wait and watch policy and market reports reveal that purchases are restricted to weddings.
Explains Varun Rakayan, a third-generation jeweller who runs Rakayans, a boutique at Hyatt Regency, “Rather than buying gold, we see customers walking in and selling. At the moment, they are getting a price higher than what they bought it for.” Till last year, gold prices were hovering around Rs 4,200 per 10 grams but now they have gone up to around Rs 6,000. According to Deepak Mehra of Mehrasons (Ashwini Kumar), South Extension-Part I, the hike started at the international bullion market. “Most people earlier investing in shares shifted to bullion after the World Trade Towers collapse. This brought about an increase in prices worldwide.”
Even companies such as Tanishq (with a turnover of Rs 350 crore) are introducing schemes to lure customers back into the buying fold. “We’ve launched Gold Mine for 99, a nationwide scheme. We have also tried to adjust the huge price difference by reducing our making charges in plain gold 22-carat jewellery,” says regional business manager (northern India) Bhuwan Gaurav.
They’ve cut the making charges from Rs 65-Rs 165 per gram (depending on the design’s complexity) to Rs 65-Rs 99. “For studded and diamond sets we offer a flat reduction of five per cent on every piece of jewellery purchases,” adds Gaurav. Motivated by the good response to the pilot, Tanishq, which has five showrooms in the Capital and 56 nationwide, decided to launch Gold Mine all over the country. “Gold rates reflect market sentiments and we found that purchases were being postponed. So, we cut our charges,” says Gaurav. Not only has Tanishq seen a 70 per cent rise in sales. Gold Mine for 99 is on till Feb 12 (which could be extended). So, wait no longer to buy your favourite necklace!
