Gold jewelry sales - Bottom fell out
I was wondering last month how badly gold jewellers in India were going to be impacted due to volatile gold prices: Gold volatility - Panic!
The ATR (Average True Range) - a measure of daily volatilty - has spiked up along with the panic buying. Usually, very high volatility is a prelude to a change in trend. Let’s see. Also note that these crazy moves won’t go over well with jewellers & retail buyers in India - especially with the festival (gold buying) season around the corner.
Well, here is what Economic Times found: Gold spooks consumers, jewelers offer discount
“Dealers are offering discounts of up to 60 rupees per gram on the international prices. Diwali sales won’t be very good,”
“People have no funds. Local gold prices are quoting below international prices by around 300 rupees per 10 grams,”
“The sales are down to hardly 10 to 12 percent of normal sales,”
Not good. Diwali week is October 25-30, and I doubt things will improve much by then.
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