Chennai: Despite a 25 per cent rise in gold prices, ICRA expects jewellery sales to grow only by 14-18 per cent in FY25, indicating lower sales in volume terms. After recording a value growth of 18 per cent in FY24, gold jewellery sales are expected to grow by 14-18 per cent FY25, finds ICRA. However, so far in the current fiscal, the average gold price has risen by a sharp 25 per cent vis-à-vis FY2024 average price. Hence, gold jewellery sales are expected to be lower in volume terms. “We expect mid-single digit drop in volume sales, somewhere around 4-7 per cent. Customers usually come with a budget and as prices remain higher, this affects the volumes,” said Srikumar Krishnamurthy, senior VP and co-group head, Corporate Ratings, ICRA. However, between January and November, gold imports have been 10 per cent higher at 755 tonnes, according to Metal Focus. This higher import volumes seem to have gone in favour of gold coins and bars sales. “We expect a strong double-digit volume growth in bars and coins this year as the investment demand for gold was higher due to the bullish sentiments in the market. The price corrections would have been used by investors as an opportunity to acquire more gold,” said Krishnamurthy. According to the World Gold Council, the investment demand for gold in the September quarter was up 41 per cent at 76.7 tonnes. The festive season quarter too is supposed to have seen strong demand for bars and coins.
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