Jewelers in India brace for lowest sales in 25 years on virus

TheStar Tue, Mar 24, 2020 03:14pm - 4 years View Original


Gold coins and bars sit on a tray inside a Titan Co. Tanishq jewelry store during the festival of Dhanteras in Mumbai, India, on Friday, Oct. 25, 2019. Photographer: Dhiraj Singh/Bloomberg

INDIA'S jewelry sales are set to plunge to the lowest in a quarter of a century as a lockdown to combat the rapidly spreading coronavirus brings the industry to a standstill.

Demand in the world’s second-biggest gold consumer has already tumbled, slammed by record high domestic prices and as the economy heads for the slowest pace of growth in 11 years. That pain is set to deepen as the virus spooks buyers and jewelry stores shutter their stores after Prime Minister Narendra Modi and state leaders imposed an almost-complete lockdown across much of the country.

Purchases are estimated to plummet 30% in 2020 from the 690 tons last year, N. Anantha Padmanaban, chairman of the All India Gem and Jewellery Domestic Council, said in a phone interview from Chennai. That would make it the smallest annual purchase since the 477 tons bought in 1995, according to data compiled by Bloomberg based on World Gold Council reports.

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