For weeks prior to the festival, the hoardings and ads from the World Gold Council (WGC) put out one single message – “This Diwali, Don’t Just Spend. Invest.” There were different variants on this theme including “If you remember what you bought ten Diwalis ago, it’s probably gold”; “This Diwali give a gift that shines on long after the lamps have gone out” and “This Diwali give a gift that appreciates and is appreciated”. %% Explaining the focus of the campaign, David Lamb, the Managing Director for Jewellery at WGC said, "We introduced this campaign to bring alive the unique role that gold plays in the lives of Indian families. We wanted to celebrate the way in which precious gold binds and strengthens relationships as well as reminding people of its enduring value. %% The whole world is re-evaluating the difference between spending and investing; gold, with its intrinsic worth and deep personal and cultural meanings, has a special story to tell at this special time." %% Going by reports on the festival sales across the country, it appears that the campaign perfectly reflected the mood of the Indian consumer. Gold sales, which had been relatively subdued in preceding years when the diamond boom swept all before it in the Indian markets, appear to have made a sort of a comeback, driven, in large measure, both by the special role that gold enjoys in Indian culture and the view that it is a ‘safe haven’ investment. Sales of the yellow metal registered a fairly significant rise in overall value, across most parts of the country, though the jury it still out on what exactly this translates into in terms of volumes.%% Initial reports indicate a mixed bag – in volume terms, sales were static or marginally up or down for most, while in value terms, most jewellery markets across the country seem to have registered a 20-30 per cent rise compared to the previous year.%% An official of the WGC was reported as telling the media that "Large jewellers who we spoke to reported similar or slightly lower levels of sales than the previous year. The overall market though reported a fall in jewellery demand in volume terms." %%

Larger players seem to have marginally bucked the trend. With its aggressive marketing and sheer size, Gitanjali has reported a total turnover of about Rs 400 crore. “Gold sales rose 60 per cent in value terms and about 10 per cent in volume,” said Mehul Choksi, CMD, adding that the category accounted for about 60 per cent of the business. However the diamond business was slow – up 40 per cent in value, but flat in volume terms. %% Rajesh Exports Ltd, which deals mainly in gold jewellery launched a number of new showrooms of its retail venture, Shubh Jewellers during the season. Rajesh Mehta, Chairman, said that there was an increase in volumes overall “despite the high prices of gold”. %% In Mumbai’s Zaveri Bazaar, Prithviraj Kothari of Riddhi Siddhi Bullion and president of the Bombay Bullion Association was quoted as saying, “Volumes were down 20-30 per cent, but value of business grew 20-25 per cent during the season, so far, as the price of gold saw about 40 per cent spiral over the last 12 months”.%% Of course there were many different takes on how the current gold prices were viewed by consumers. When compared directly to the same festival days last year, gold had risen by about Rs. 7,000 from Rs. 19,995 per 10 gms last Dhanteras, to about Rs. 27, 000 this year. However, while the steep rise over the year did have an impact on the consumer psychology, another benchmark – how much it has reduced compared to the peak it touched earlier this year – had quite the opposite effect! In relation to the Rs. 29,000 levels breached in August, Rs. 27,000 in fact, seemed reasonable to many.%% Speaking to the media in early October, soon after the Puja festival had ended, Sandeep Kulhalli, vice-president (retail and marketing), Tanishq, said, “In Kolkata, there has been a distinct jump in sales during this Navratra period compared to early September when prices were high and because of the Shaad (considered inauspicious) period.” %% Bachhraj Bamalwa, Chairman, All India Gems and Jewellery Trade Federation, also noted the impact of the current dip in prices, saying, “Sales during June and the first two months of second quarter (July and August) this year were slow with people holding back. The mood was to wait for prices to come down. With the current downswing, we expect customers to start buying jewellery again.” %%

In Delhi, a spokesperson of P.C. Jewellers was reported as saying, "People are buying even when prices are high. The reason is that they do not see gold prices correcting further. However, this time they have cut volumes." The consensus too was that certain categories of jewellery sold better than others. Bridal was, as always, a strong category, with consumers displaying a preference for polki.%% "Those who have weddings coming up will buy on an auspicious day rather than later," said the owner of a Mumbai store.%% Kumar Jain, vice president of Mumbai Jewellers Association and owner of UT Zaveri in Mumbai confirmed the 30 per cent rise in demand this year. Jain said a large number of buyers feared gold prices would spike again during the wedding season. In Patna, Umesh Tekriwal, manager, Tanishq, said "Compared to last year, our sale has increased by 50 per cent. For gifting, people's first choice is lightweight gold and diamond items ranging from Rs 15,000 to Rs 20,000. But, the demand of diamond and kundan polki jewellery worth Rs 3 lakh and above is also high.” %% Others too reported a focus on lightweight jewellery. Subhankar Sen, executive director of Senco Jewellers, Kolkata told mediapersons, "Lightweight jewellery is selling well – we had a wide range of lightweight jewellery in varied designs ranging from the traditional to the sleek.”%% Anjali Jewellers from Kolkata also noted good demand for lightweight jewellery, especially the chunky-looking lightweight jewellery that it has pioneered in the city. In Bangalore too, jewellers like Bhima, Shubh and CKC all reported significant increase in the demand for lightweight jewellery, and had adjusted their stocking patterns in anticipation of this trend.%% Choksi notes that across Gitanjali stores, “smaller items did well”, and while bridal sets sold, there was a heavier demand for “smaller three piece bridal sets”. But a fairly unanimous opinion from across the country is that investment was one of the strongest motives driving sales. Gold coins were relatively in much higher demand this time than jewellery. Said Sandeep Gupta of PP Jewellers, Delhi, “Coins, especially of silver, are much in demand as people are buying precious metals not only as gifts but also as an investment." %% The scenario was similar in most parts of the country. At Zaveri Bazaar in Mumbai, there were reports of long lines outside many jewellery shops. Despite many banks offering coins, the buyers preferred the jewellers – possibly as a result of the high premiums that banks add on to the coins they sell. Kothari estimates that sale of gold coins this year was highest recorded during the last three years.%%

Or as Ashok Jain, proprietor of Chenaji Narsinghji in Zaveri Bazaar described to the media, "Coins of 1 gram, 2 grams, etc are the flavour of the season."%% Banks also sold large volumes of coins. A State Bank of India official told reporters that demand was almost double of last year. Some like Punjab National Bank, HDFC Bank and others opened special counters to sell gold.%% Perhaps the clearest indicator of the strength of the investment motive was the spike in ‘paper gold’. Volumes at the country's biggest gold fund, Benchmark Mutual Fund, owned by Goldman Sachs Asset Management (India) Pvt Ltd, rose by more than 17 times to 1.01 million units from an average of 59,002 units. %% The Bombay Stock Exchange, which sells the gold ETF, extended trading hours and waived transaction fees for Dhanteras sales.%% Another indicator of the strong investment orientation was the huge increase in trading of gold. For example, the National Spot Exchange which started selling dematised gold since last year clocked a Dhanteras sale of Rs. 190 crore as against Rs. 150 to 140 crore on a regular day. Last year, the daily volume in this segment stood at 20 to 25 crore, said Anjeya Sinha, the exchange's CEO.%% Trading volumes of gold ETF shares listed on Indian exchanges zoomed. NSE trade volume was seven times higher than normal and reached Rs. 6.36 billion rupees in value terms, with prices of Indian stock exchange listed ETF providers climbing by 1 per cent to 2.5 per cent.%% While the jewellery industry is smiling for now, the fact that lightweight jewellery and coins were major sellers, and other forms of investment in gold showed significant growth, are points worth pondering over as they define their strategies for the future.%%

For weeks prior to the festival, the hoardings and ads from the World Gold Council (WGC) put out one single message – “This Diwali, Don’t Just Spend. Invest.” There were different variants on this theme including “If you remember what you bought ten Diwalis ago, it’s probably gold”; “This Diwali give a gift that shines on long after the lamps have gone out” and “This Diwali give a gift that appreciates and is appreciated”. %% Explaining the focus of the campaign, David Lamb, the Managing Director for Jewellery at WGC said, "We introduced this campaign to bring alive the unique role that gold plays in the lives of Indian families. We wanted to celebrate the way in which precious gold binds and strengthens relationships as well as reminding people of its enduring value. %% The whole world is re-evaluating the difference between spending and investing; gold, with its intrinsic worth and deep personal and cultural meanings, has a special story to tell at this special time." %% Going by reports on the festival sales across the country, it appears that the campaign perfectly reflected the mood of the Indian consumer. Gold sales, which had been relatively subdued in preceding years when the diamond boom swept all before it in the Indian markets, appear to have made a sort of a comeback, driven, in large measure, both by the special role that gold enjoys in Indian culture and the view that it is a ‘safe haven’ investment. Sales of the yellow metal registered a fairly significant rise in overall value, across most parts of the country, though the jury it still out on what exactly this translates into in terms of volumes.%% Initial reports indicate a mixed bag – in volume terms, sales were static or marginally up or down for most, while in value terms, most jewellery markets across the country seem to have registered a 20-30 per cent rise compared to the previous year.%% An official of the WGC was reported as telling the media that "Large jewellers who we spoke to reported similar or slightly lower levels of sales than the previous year. The overall market though reported a fall in jewellery demand in volume terms." %%

Larger players seem to have marginally bucked the trend. With its aggressive marketing and sheer size, Gitanjali has reported a total turnover of about Rs 400 crore. “Gold sales rose 60 per cent in value terms and about 10 per cent in volume,” said Mehul Choksi, CMD, adding that the category accounted for about 60 per cent of the business. However the diamond business was slow – up 40 per cent in value, but flat in volume terms. %% Rajesh Exports Ltd, which deals mainly in gold jewellery launched a number of new showrooms of its retail venture, Shubh Jewellers during the season. Rajesh Mehta, Chairman, said that there was an increase in volumes overall “despite the high prices of gold”. %% In Mumbai’s Zaveri Bazaar, Prithviraj Kothari of Riddhi Siddhi Bullion and president of the Bombay Bullion Association was quoted as saying, “Volumes were down 20-30 per cent, but value of business grew 20-25 per cent during the season, so far, as the price of gold saw about 40 per cent spiral over the last 12 months”.%% Of course there were many different takes on how the current gold prices were viewed by consumers. When compared directly to the same festival days last year, gold had risen by about Rs. 7,000 from Rs. 19,995 per 10 gms last Dhanteras, to about Rs. 27, 000 this year. However, while the steep rise over the year did have an impact on the consumer psychology, another benchmark – how much it has reduced compared to the peak it touched earlier this year – had quite the opposite effect! In relation to the Rs. 29,000 levels breached in August, Rs. 27,000 in fact, seemed reasonable to many.%% Speaking to the media in early October, soon after the Puja festival had ended, Sandeep Kulhalli, vice-president (retail and marketing), Tanishq, said, “In Kolkata, there has been a distinct jump in sales during this Navratra period compared to early September when prices were high and because of the Shaad (considered inauspicious) period.” %% Bachhraj Bamalwa, Chairman, All India Gems and Jewellery Trade Federation, also noted the impact of the current dip in prices, saying, “Sales during June and the first two months of second quarter (July and August) this year were slow with people holding back. The mood was to wait for prices to come down. With the current downswing, we expect customers to start buying jewellery again.” %%

In Delhi, a spokesperson of P.C. Jewellers was reported as saying, "People are buying even when prices are high. The reason is that they do not see gold prices correcting further. However, this time they have cut volumes." The consensus too was that certain categories of jewellery sold better than others. Bridal was, as always, a strong category, with consumers displaying a preference for polki.%% "Those who have weddings coming up will buy on an auspicious day rather than later," said the owner of a Mumbai store.%% Kumar Jain, vice president of Mumbai Jewellers Association and owner of UT Zaveri in Mumbai confirmed the 30 per cent rise in demand this year. Jain said a large number of buyers feared gold prices would spike again during the wedding season. In Patna, Umesh Tekriwal, manager, Tanishq, said "Compared to last year, our sale has increased by 50 per cent. For gifting, people's first choice is lightweight gold and diamond items ranging from Rs 15,000 to Rs 20,000. But, the demand of diamond and kundan polki jewellery worth Rs 3 lakh and above is also high.” %% Others too reported a focus on lightweight jewellery. Subhankar Sen, executive director of Senco Jewellers, Kolkata told mediapersons, "Lightweight jewellery is selling well – we had a wide range of lightweight jewellery in varied designs ranging from the traditional to the sleek.”%% Anjali Jewellers from Kolkata also noted good demand for lightweight jewellery, especially the chunky-looking lightweight jewellery that it has pioneered in the city. In Bangalore too, jewellers like Bhima, Shubh and CKC all reported significant increase in the demand for lightweight jewellery, and had adjusted their stocking patterns in anticipation of this trend.%% Choksi notes that across Gitanjali stores, “smaller items did well”, and while bridal sets sold, there was a heavier demand for “smaller three piece bridal sets”. But a fairly unanimous opinion from across the country is that investment was one of the strongest motives driving sales. Gold coins were relatively in much higher demand this time than jewellery. Said Sandeep Gupta of PP Jewellers, Delhi, “Coins, especially of silver, are much in demand as people are buying precious metals not only as gifts but also as an investment." %% The scenario was similar in most parts of the country. At Zaveri Bazaar in Mumbai, there were reports of long lines outside many jewellery shops. Despite many banks offering coins, the buyers preferred the jewellers – possibly as a result of the high premiums that banks add on to the coins they sell. Kothari estimates that sale of gold coins this year was highest recorded during the last three years.%%

Or as Ashok Jain, proprietor of Chenaji Narsinghji in Zaveri Bazaar described to the media, "Coins of 1 gram, 2 grams, etc are the flavour of the season."%% Banks also sold large volumes of coins. A State Bank of India official told reporters that demand was almost double of last year. Some like Punjab National Bank, HDFC Bank and others opened special counters to sell gold.%% Perhaps the clearest indicator of the strength of the investment motive was the spike in ‘paper gold’. Volumes at the country's biggest gold fund, Benchmark Mutual Fund, owned by Goldman Sachs Asset Management (India) Pvt Ltd, rose by more than 17 times to 1.01 million units from an average of 59,002 units. %% The Bombay Stock Exchange, which sells the gold ETF, extended trading hours and waived transaction fees for Dhanteras sales.%% Another indicator of the strong investment orientation was the huge increase in trading of gold. For example, the National Spot Exchange which started selling dematised gold since last year clocked a Dhanteras sale of Rs. 190 crore as against Rs. 150 to 140 crore on a regular day. Last year, the daily volume in this segment stood at 20 to 25 crore, said Anjeya Sinha, the exchange's CEO.%% Trading volumes of gold ETF shares listed on Indian exchanges zoomed. NSE trade volume was seven times higher than normal and reached Rs. 6.36 billion rupees in value terms, with prices of Indian stock exchange listed ETF providers climbing by 1 per cent to 2.5 per cent.%% While the jewellery industry is smiling for now, the fact that lightweight jewellery and coins were major sellers, and other forms of investment in gold showed significant growth, are points worth pondering over as they define their strategies for the future.%%

For weeks prior to the festival, the hoardings and ads from the World Gold Council (WGC) put out one single message – “This Diwali, Don’t Just Spend. Invest.” There were different variants on this theme including “If you remember what you bought ten Diwalis ago, it’s probably gold”; “This Diwali give a gift that shines on long after the lamps have gone out” and “This Diwali give a gift that appreciates and is appreciated”. %% Explaining the focus of the campaign, David Lamb, the Managing Director for Jewellery at WGC said, "We introduced this campaign to bring alive the unique role that gold plays in the lives of Indian families. We wanted to celebrate the way in which precious gold binds and strengthens relationships as well as reminding people of its enduring value. %% The whole world is re-evaluating the difference between spending and investing; gold, with its intrinsic worth and deep personal and cultural meanings, has a special story to tell at this special time." %% Going by reports on the festival sales across the country, it appears that the campaign perfectly reflected the mood of the Indian consumer. Gold sales, which had been relatively subdued in preceding years when the diamond boom swept all before it in the Indian markets, appear to have made a sort of a comeback, driven, in large measure, both by the special role that gold enjoys in Indian culture and the view that it is a ‘safe haven’ investment. Sales of the yellow metal registered a fairly significant rise in overall value, across most parts of the country, though the jury it still out on what exactly this translates into in terms of volumes.%% Initial reports indicate a mixed bag – in volume terms, sales were static or marginally up or down for most, while in value terms, most jewellery markets across the country seem to have registered a 20-30 per cent rise compared to the previous year.%% An official of the WGC was reported as telling the media that "Large jewellers who we spoke to reported similar or slightly lower levels of sales than the previous year. The overall market though reported a fall in jewellery demand in volume terms." %%

Larger players seem to have marginally bucked the trend. With its aggressive marketing and sheer size, Gitanjali has reported a total turnover of about Rs 400 crore. “Gold sales rose 60 per cent in value terms and about 10 per cent in volume,” said Mehul Choksi, CMD, adding that the category accounted for about 60 per cent of the business. However the diamond business was slow – up 40 per cent in value, but flat in volume terms. %% Rajesh Exports Ltd, which deals mainly in gold jewellery launched a number of new showrooms of its retail venture, Shubh Jewellers during the season. Rajesh Mehta, Chairman, said that there was an increase in volumes overall “despite the high prices of gold”. %% In Mumbai’s Zaveri Bazaar, Prithviraj Kothari of Riddhi Siddhi Bullion and president of the Bombay Bullion Association was quoted as saying, “Volumes were down 20-30 per cent, but value of business grew 20-25 per cent during the season, so far, as the price of gold saw about 40 per cent spiral over the last 12 months”.%% Of course there were many different takes on how the current gold prices were viewed by consumers. When compared directly to the same festival days last year, gold had risen by about Rs. 7,000 from Rs. 19,995 per 10 gms last Dhanteras, to about Rs. 27, 000 this year. However, while the steep rise over the year did have an impact on the consumer psychology, another benchmark – how much it has reduced compared to the peak it touched earlier this year – had quite the opposite effect! In relation to the Rs. 29,000 levels breached in August, Rs. 27,000 in fact, seemed reasonable to many.%% Speaking to the media in early October, soon after the Puja festival had ended, Sandeep Kulhalli, vice-president (retail and marketing), Tanishq, said, “In Kolkata, there has been a distinct jump in sales during this Navratra period compared to early September when prices were high and because of the Shaad (considered inauspicious) period.” %% Bachhraj Bamalwa, Chairman, All India Gems and Jewellery Trade Federation, also noted the impact of the current dip in prices, saying, “Sales during June and the first two months of second quarter (July and August) this year were slow with people holding back. The mood was to wait for prices to come down. With the current downswing, we expect customers to start buying jewellery again.” %%

In Delhi, a spokesperson of P.C. Jewellers was reported as saying, "People are buying even when prices are high. The reason is that they do not see gold prices correcting further. However, this time they have cut volumes." The consensus too was that certain categories of jewellery sold better than others. Bridal was, as always, a strong category, with consumers displaying a preference for polki.%% "Those who have weddings coming up will buy on an auspicious day rather than later," said the owner of a Mumbai store.%% Kumar Jain, vice president of Mumbai Jewellers Association and owner of UT Zaveri in Mumbai confirmed the 30 per cent rise in demand this year. Jain said a large number of buyers feared gold prices would spike again during the wedding season. In Patna, Umesh Tekriwal, manager, Tanishq, said "Compared to last year, our sale has increased by 50 per cent. For gifting, people's first choice is lightweight gold and diamond items ranging from Rs 15,000 to Rs 20,000. But, the demand of diamond and kundan polki jewellery worth Rs 3 lakh and above is also high.” %% Others too reported a focus on lightweight jewellery. Subhankar Sen, executive director of Senco Jewellers, Kolkata told mediapersons, "Lightweight jewellery is selling well – we had a wide range of lightweight jewellery in varied designs ranging from the traditional to the sleek.”%% Anjali Jewellers from Kolkata also noted good demand for lightweight jewellery, especially the chunky-looking lightweight jewellery that it has pioneered in the city. In Bangalore too, jewellers like Bhima, Shubh and CKC all reported significant increase in the demand for lightweight jewellery, and had adjusted their stocking patterns in anticipation of this trend.%% Choksi notes that across Gitanjali stores, “smaller items did well”, and while bridal sets sold, there was a heavier demand for “smaller three piece bridal sets”. But a fairly unanimous opinion from across the country is that investment was one of the strongest motives driving sales. Gold coins were relatively in much higher demand this time than jewellery. Said Sandeep Gupta of PP Jewellers, Delhi, “Coins, especially of silver, are much in demand as people are buying precious metals not only as gifts but also as an investment." %% The scenario was similar in most parts of the country. At Zaveri Bazaar in Mumbai, there were reports of long lines outside many jewellery shops. Despite many banks offering coins, the buyers preferred the jewellers – possibly as a result of the high premiums that banks add on to the coins they sell. Kothari estimates that sale of gold coins this year was highest recorded during the last three years.%%

Or as Ashok Jain, proprietor of Chenaji Narsinghji in Zaveri Bazaar described to the media, "Coins of 1 gram, 2 grams, etc are the flavour of the season."%% Banks also sold large volumes of coins. A State Bank of India official told reporters that demand was almost double of last year. Some like Punjab National Bank, HDFC Bank and others opened special counters to sell gold.%% Perhaps the clearest indicator of the strength of the investment motive was the spike in ‘paper gold’. Volumes at the country's biggest gold fund, Benchmark Mutual Fund, owned by Goldman Sachs Asset Management (India) Pvt Ltd, rose by more than 17 times to 1.01 million units from an average of 59,002 units. %% The Bombay Stock Exchange, which sells the gold ETF, extended trading hours and waived transaction fees for Dhanteras sales.%% Another indicator of the strong investment orientation was the huge increase in trading of gold. For example, the National Spot Exchange which started selling dematised gold since last year clocked a Dhanteras sale of Rs. 190 crore as against Rs. 150 to 140 crore on a regular day. Last year, the daily volume in this segment stood at 20 to 25 crore, said Anjeya Sinha, the exchange's CEO.%% Trading volumes of gold ETF shares listed on Indian exchanges zoomed. NSE trade volume was seven times higher than normal and reached Rs. 6.36 billion rupees in value terms, with prices of Indian stock exchange listed ETF providers climbing by 1 per cent to 2.5 per cent.%% While the jewellery industry is smiling for now, the fact that lightweight jewellery and coins were major sellers, and other forms of investment in gold showed significant growth, are points worth pondering over as they define their strategies for the future.%%