Dubai jewellers cash in on Indian festival

Dubai-based jewellers and groups devoted to promotion of the bullion reported an increase in spending by consumers on gold on Akshay Tritiya, an Indian festival which is considered auspicious for the purchase of precious metals.

A few traders said they have seen as much as 10 per cent rise in the volume of gold sold. The figures for volumes of gold sold yesterday were not available, and the Dubai chapter of the World Gold Council (WGC) said it will release it only a day later.

"If we compare our gold sales to the last year, there was a 10 per cent rise in terms of volume," said Amit Dhakan, of the Dhakan Jewellers, which has 12 retail outlets across Dubai. "Gold sales have been stead across the UAE. We have reports that average sales of gold per customer has been over 50 grams. There was one customer who bought gold worth Dh200,000," said Yogaani Bhatia, the UAE Country Manager with the WGC.

Dealers said they saw advance booking of gold for delivery on the day of Akshay Tritiya. Dhakan said that some customers had booked gold "as early as a month".

Advance bookings save the customers from an expected spike in price on the day of Akshay Tritiya.

The trend contrasts with what's happening in India, the world's largest jewellery market. High gold prices have dampened gold sales in India, a market, that though huge is very price impulsive. Gold prices remain beyond $1,220 an ounce and closed at $1228.80 an ounce.

The Bombay Bullion Association forecast that the tonnage off-take of gold in India will fall to 20 on Akshay Tritiya this year from 45 tonnes last year. "We do not see a rise in gold sales on Akshay Tritiya this year," said Vijendra Gupta, Director of Goldcrafterz DMCC, that has offices in India and Dubai.

"Gold sales could probably be triggered by the financial stimulus provided to Greece. It is widely expected that the Greek government will probably use part of the money to hedge gold."

Meanwhile, those dealing in diamond and silver said they have witnessed steady sales. "Diamond sales have been pretty good as prices have been steady for the past one year," Amit Dhamani, Chairman of Dubai Gold and Jewellery Group, said. A trader said he has seen an increase in migration of customers who earlier bought gold to silver. "Silver prices have also risen, but then still the precious metal costs less than gold," the trader reasoned. Chandu Siroya, Vice-Chairman of DGJG, said the overall sales of jewellery was as good as the last year.