Business Ideas

Gold Rush boosts retailers' sales 30%

The Great Indian Gold Rush, a month-long event organised by the World Gold Council (WGC), has received an overwhelming response despite the sky-high prices of the precious metal. - Scrap gold sales dip despite higher price - Gold prices may remain firm in 2nd half of 2009 - Slow rural economy spells low demand for gold - Gold demand slumps 38% as prices surge - Inflows into gold ETFs rise 32% year to date - Gold hits Rs 15,000 on firm buying Ajay Mitra, managing director, Indian sub-continent, WGC, said, “Consumers were eager to book as much as they could before any further rise in prices. Gold being an investment, higher prices have never been a barrier for Indian consumers.” “Any sudden price spurt does affect gold consumption for a short period. But the yellow metal has corrected in the domestic market in the last couple of days, which has boosted consumer sentiment. There was also good support from the ongoing marriage season,” said Mitra. Gold slipped 2.14 per cent in the last one week from Rs 15,865 per 10 gram to Rs 15,525 per 10 gram. Retailers like Mumbai-based Tribhovandas Bhimji Zaveri (TBZ) who participated in the event saw over 30 per cent rise in sales during Dussehra. Although absolute numbers were yet to be compiled from all 12 retail points, initial indications were that we recorded over 30 per cent growth in sales during the Dussehra season, said Kiran Dixit of TBZ. Six out of 12 TBZ outlets are participating in the Gold Rush. Started on September 19, the event is on in Mumbai (65 shops), New Delhi (70 shops), Bengaluru (25 shops) and Vidarbha (20 shops). The festival will end on October 18. It begins in Kolkata on October 2. Public sector Metals and Mineral Trading Corporation (MMTC) Ltd also organised a 10-day gold festival at its 17 stalls in New Delhi along with participating in Gold Rush. The company’s sales rose 15-20 per cent during the period. Encouraged by consumers’ enthusiasm, MMTC is planning organise a similar sales event between October 5-15 across its retail points in New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad. “Consumers at our stall liked our designs prepared in Chennai, Bengaluru, Kolkata and New Delhi. They were also confident buying coins and bars minted in MMTC’s refinery. Surprisingly, many customers enquired about future price behaviour,” said Preeti Kaur, chief general manager (publicity), MMTC Ltd.

Online flower shop Singapore commented:

This shows us how crazy people are for gold.I really like this blog of yours and its quite informative also.

26.11.2011

online florist commented:

This boost in the sales of Gold shows that people are still in love with gold as they are buying it good quantitiy because its price are going up.

29.11.2011

Belly button rings commented:

Surely people are buying gold more then ever even the Gold rates are going atrociously high because people know that the rate will not go down, so they are even investing in gold and it has increased the sale of Gold so much.

29.11.2011


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