KARACHI, Oct 5: Gold dealers expect normal sales of jewellery in the upcoming marriage season that kicks off soon after Eidul Fitr. They rule out any negative impact of the increase in prices of essential items on ornament sales.

They say many families will throng the jewellery shops from 15th of Ramazan for on spot buying or placing orders for gold sets for marriages of their daughters to be solemnised after eid.

Currently gold prices have been on the decline in view of the falling international prices over some calmness on Iran nuclear issue coupled with downward trend in global crude oil prices.

Gold is now priced at Rs13,300 per tola and one cannot say that these prices will prevail by the end of the holy month as much depends on the international market rates.

Tessori Group of Companies Chairman Akhtar Khan Tessori told Dawn that buyers would turn up from the mid of Ramazan in larger numbers to place orders or for spot buying of jewellery. “I think there will be normal sales in this marriage season as of last year,” he added.

He ruled out any negative impact of the rising inflation on gold jewellery buying especially in marriage season. “People arrange gold jewellery and ornaments from other resources on the occasion of marriage of their daughters in order to provide them financial security,” he said.

He also rejected the impression that people were now giving fewer jewellery sets to their daughters as compared to previous years. “Gold demand is growing five to six per cent every year in the country,” he added.

However, he said that there had been some slowdown in the attitude of investors who appeared cautious in lifting gold bars for investment purpose in view of falling prices in the last few months.

“North Korean issue has now intensified, after some ease on Iranian nuke conflict, which may trigger fresh increase in gold rates in the world markets and investors will again start buying gold,” he observed.

Almas Gem and Jewellery Chief Executive Saeed Mazhar Ali also predicted normal sales this season and that the rising prices of essential items had not hit the gold jewellery and ornaments sales. “Those who have sound financial status are now buying both gold and diamond sets for their daughters but customers from other income groups are giving only jewellery sets as per their financial capacity,” he added.

He said that purchasing power of people had improved substantially which was evident from the rising presence of customers in restaurants and hotels where they were even seen waiting in long queues to get entry.

“Consumers also hold some charm in procuring and investing in gold since their confidence in yellow metal has improved compared to stocks and currencies,” Saeed said, adding that gold buying in Pakistan was increasing.

However, owner of Raees Jewels International at the Forum Clifton, Raeesuddin Shaikh offered a different view saying that jewellery sales this year will remain depressed because of rising prices of essential items as people are more conscious in meeting their daily needs first instead of procuring yellow metal.

“Parents are giving jewellery sets to their daughters as per their income capacity. When they have surplus amount they give more jewellery sets to their daughters,” he said.

In many rich families giving higher number of gold jewellery sets is considered as the sign of prestige as these families are not bothered about the rising inflation.

However, there are many families who are much more concerned over the burgeoning increase in kitchen items and they do not show any ostentation in marriage functions of their daughters.

Raeesuddin said “now people are giving fewer jewellery sets to their daughters as compared to previous years because of liquidity constraints.”

“Those who paint a rosy picture about the booming sales of jewellery sets are actually twisting the real facts of the markets. Even people, who have been in forefront in investing in gold bars few months back have now become reluctant in investing in the yellow metal since its price has started downward journey,” Raeesuddin explained.

Mohammad Sohail of Jehangir Siddiqui Research said that investors in global markets had lost their hopes on gold since the prices of all the metals had become weak.

“Investors are now shifting towards the stock markets and this is also happening in Pakistan and India,” he said.

He said oil prices had been on the decline and as a result inflation concerns all over the world had also subsided. “Investors have been selling the metals and are taking plunge in the stock markets all over the world and the same is happening in Pakistan,” he said.

Sohail said that investors had slowed down their buying activities in gold in Pakistan after its steep fall in prices over the last few months. “People do buy gold but they do not procure it solely for investment purpose only,” he added.