NO GOLD RUSH THIS:All that glitters...

Known for its extravagant jewellery designs and styles, Pink City has low hopes of gold and silver sales this Dhanteras.

City-based jewellers are experiencing lukewarm response on sale of jewellery this year, compared to last year, specially in heavy weight gold jewellery. The major reason for decrease is believed to be the limited spending capacity of consumers.

“The market is weak as compared to last year. The trend of buying gold has gone down as people have reduced their budgets post demonetisation,” said Sanchit Tatiwala, owner, Tatiwala Gehna. Jewellers, in lieu of giving salaries to employees and workers, have not reduced the prices of the products even with increase in the overall cost due to three per cent Goods and Services Tax.

“No matter what you do, if people do not have money they will not come. I cannot decrease the salary of my employees, if it is Rs 10,000 a month, I will have to pay that. People look for increment in their jobs, not decrement,” said Prateek Kothari, owner, Kothari Jewels.

However, some city jewellers have reduced their making cost and have also reduced the quantity of gold used in each product to make it feasible for their customers.

“The rate of gold has increased and taxes have also increased. In effect of that, we have reduced the making charges by 50 per cent during the festival season,” said Preeti Sogani, managing director, Sogani Jewellers.

Overall, the market is expected to be down by 25 to 30 per cent this year, compared to the festive season last year.