covid 19: ‘Jewelry sales down 26% in the fourth quarter of fiscal 2022’ | Ahmedabad News
Ahmedabad: With the third wave of Covid-19 curbing wedding opportunities, inflationary pressures eating away at disposable incomes and general muted sentiment due to high gold prices, demand for gold jewelery has fallen by 26% in Gujarat in the fourth quarter of FY2022. According to the latest World Gold Council (WGC) gold demand trend report, sales of gold jewelery also fell by 26% in the quarter Across the country.
Total gold sales volume decreased by 31% in the fourth quarter of fiscal 2022 compared to the corresponding quarter of fiscal 2021. According to data compiled by the Ahmedabad Air Cargo Complex, imports of gold from January to March this year amounted to 8.3 MT against 12.26 MT. in the corresponding period of 2021.
According to the WGC report, demand for the yellow metal has declined due to relatively high gold prices, which have proven to be a limiting factor, especially as consumers face increasing pressure on disposable incomes. due to soaring general prices.
“Jewellery demand fell 34% globally, while bullion and coins increased slightly. Weddings were muted due to the third wave of Covid-19 followed by a long Moreover, in March, gold prices increased significantly due to the Russian-Ukrainian war situation, which slowed down the demand for gold,” said Somasundara PR, Managing Director for the India, WGC.
Interestingly, during this period gold recycling increased dramatically. In India, some 310 MT of gold was recycled during the quarter, up 15% compared to the corresponding quarter. The same in Gujarat was around 35MT according to industry estimates.
“With rising gold prices, returns were surely higher. Additionally, a number of people taking over small businesses were struggling to meet their cash flow needs amid a surge in the inflation. As a result, recycling of gold has continued,” Somasundaram added. On Saturday, however, gold prices remained within the stable range of Rs 53,500 per 10 grams over a week.
Total gold sales volume decreased by 31% in the fourth quarter of fiscal 2022 compared to the corresponding quarter of fiscal 2021. According to data compiled by the Ahmedabad Air Cargo Complex, imports of gold from January to March this year amounted to 8.3 MT against 12.26 MT. in the corresponding period of 2021.
According to the WGC report, demand for the yellow metal has declined due to relatively high gold prices, which have proven to be a limiting factor, especially as consumers face increasing pressure on disposable incomes. due to soaring general prices.
“Jewellery demand fell 34% globally, while bullion and coins increased slightly. Weddings were muted due to the third wave of Covid-19 followed by a long Moreover, in March, gold prices increased significantly due to the Russian-Ukrainian war situation, which slowed down the demand for gold,” said Somasundara PR, Managing Director for the India, WGC.
Interestingly, during this period gold recycling increased dramatically. In India, some 310 MT of gold was recycled during the quarter, up 15% compared to the corresponding quarter. The same in Gujarat was around 35MT according to industry estimates.
“With rising gold prices, returns were surely higher. Additionally, a number of people taking over small businesses were struggling to meet their cash flow needs amid a surge in the inflation. As a result, recycling of gold has continued,” Somasundaram added. On Saturday, however, gold prices remained within the stable range of Rs 53,500 per 10 grams over a week.