CWG to boost jewellery sales by 15-20%

The 19th Commonwealth Games (CWG), being held for the first time in India  and only the second in the Asian region, is all set to experience the glitters of the jewellery markets of the world's largest gold importer country.

Industry players in the gold jewellery sector in India are in the lookout for robust jewellery sales during the international event, which will start off from October 3, 2010 and last till 14th of the month. Retailers estimate 15-20% growth in sales due to the Games, where nearly 72 nations will bring hundreds of their participants.

Commenting about the outlook for the jewellery demand during the Games, Rajesh Mehta, Chairman, Rajesh Exports maintained that the sales will be robust as the event is colliding with the ongoing festive season in India.

"We are hopeful of increased sales during the Commonwealth Games to be held in October as a large number of foreign tourists will throng India, especially Delhi. We have three retail jewellery outlets in Delhi alone and expect increased sales clubbed with festive buying during this period," Mehta told CommodityOnline over a telephonic interview today.

The national capital, which is famous for gold jewellery, will host thousands of foreign visitors during the event. Jewellers are hopeful of strong sales on the back of upbeat sentiment.

"The buoyancy in market is already there and the mood is upbeat among the retail consumers. We see sales rising by around 15-20% during Games," Mehta maintained.

However, concerns run high over the shooting up prices of gold that may play a spoilsport for the jewellery industry. But considering the ongoing festivities and Diwali, being merely a couple of months away, jewellers expect demand and prices, both to rise.

Diwali is one of the most auspicious periods for Indians to buy gold and made-ups.

The mood among the consumers is upbeat, as was informed by Jai Begani, Managing Director of Forever Jewellery that gold sales is currently on upward trend due to the upcoming festive season and is expected to rise further. Forever, a retail jewellery chain has a showroom in Delhi.

"The mood of the consumer is upbeat and the sales have in fact increased, even though the gold rate is showing an upward trend. Consumers are expecting the same to go up further and thus have already started buying both for investment and also adornment," told Begani adding that the upcoming event of Commonwealth Games should be a very exciting prospect for sales of gold and diamond jewellery.

In the Indian markets spot gold prices are hovering over 18950 per 10 grams today, while on the commexes, MCX Gold traded at Rs.18974 up from its previous close of Rs.18971 per 10 grams.