Sunny side up: yellow metal glitters post-bifurcation

The bifurcation of the State has come as a blessing in disguise for gold jewellers who have been said to be registering a gradual growth in sales for the past few months.

According to Bezawada Jewellers and Diamond Merchants Association president K.J.N. Prasad, gold shops registered more than 10 per cent increase in sales since August last with a majority of customers purchasing ornaments in city. Buyers, hitherto, used to frequent Hyderabad for their requirements.

A majority of the families used to visit Hyderabad to purchase diamond-studded jewellery and other exclusive ornaments at Abids, Ameerpet, Begum Bazaar, Pot Market and General Bazaar in Secunderabad and other swanky showrooms at Somajiguda, Punjagutta and Patny Centre.

They used to spend at least two days in Hyderabad to complete their shopping, but the trend has now changed.

With showrooms and other jewellers from Vijayawada coming up with different designs and offers, most customers are buying ornaments here instead of going to Hyderabad.

“It’s really an encouraging sign for us. We are hopeful of further increase in sales in days to come as a majority of the government employees hailing from A.P have to relocate to the city,” explained Mr. Prasad.

To encash the growing demand, several gold merchants are mulling opening their showrooms here shortly. Three merchants from Chennai and Bengaluru have already chalked out plans to launch their showrooms.

Till recently, businessmen used to organise jewellery exhibitions in Hyderabad but the focus shifted to Vijayawada as organisers have started conducting similar expos here amidst high security in star hotels, said Mr. Prasad. More than 200 jewellery businessmen are catering to the needs of customers at different outlets here.

However, there has been a downward trend registered in the gold sales for the past few weeks.

Consumers, according to gold jewellers, are adopting a wait and watch attitude before going ahead with purchases as they are anticipating further drop in the prices of the yellow metal in the days to come.

Gold prices which hovered around Rs. 29,000 for 10 grams a few weeks ago, dropped to around Rs. 26,000 for 10 grams recently.

“Sales may improve from mid January as marriage season commences after Sankranti festival,” Bezawada Jewellers and Diamond Merchants Association vice-president Ch. Jaganmohan Rao said.

The lull in the business was all the more evident from the low business witnessed during Dhanteras and Deepavali.