Ahmedabad: Glitter's there, but the gold is missing

The glitter is there and so is the shine. But cash registers are not ringing as the rush for gold is missing at the Manek Chowk market. While days like Pushya Nakshatra and Dhanteras are considered auspicious for the buying of yellow metal, the mood of Diwali has failed to set in.

“Economy is down, gold prices high and hence buyers are less. So, overall business has recorded a 60-70% low, cumulating over a period of five years. We are not an organised market like retailers and showrooms elsewhere in the city. Plus, no parking and a non-vehicle zone during Diwali prevent people from coming here,” lamented Ramchand Motwani, a jeweller of Manek Chowk.

“There was a time when we would sell about 2-2.5 kg a day, including jewellery and gold coins.

Today, we hardly sell 50-60 gm a day,” rued Motwani’s uncle Mitesh Motwani, who also owns a jewellery shop there.

The 350-year-old Manek Chowk gold market has its dedicated band of customers, said Ketan Choksi, another jeweller. “We have been in this market for over four decades and our families own at least 10 more shops here. A specific set of customers buy from us for decades. Yet, the sale of gold ornaments or raw gold is just not picking up as new customers are too few due to lack of facilities. With about 50-60% plunge in sales, we expect the market to pick up on Dhanteras,” he hoped.

The conversion rate for the sale of yellow metal is as high as 90%, claimed Jayesh Soni, a wholesaler, who owns a workshop here. “We get a mixed set of customers, including womenfolk from the walled city as well as men from the city and outside. We also have customers from Mehsana, Patan and Bhavnagar and even farmers and labourers as they get it comparatively cheap here. They have been buying gold from us, usually in bulk, for ages. However, due to inflation and low budget, buying has fallen drastically by about 60-70% and sales have declined by 20-25% compared to last year,” said Soni.

These shops might be small in size but they have all kinds of varieties that one can get elsewhere. “Even the smallest shop will have at least 20-25 kg gold. It is a misconception that we don’t have variety. Our regular customers know what we offer. But, showrooms, boasting of a fancy display and hoardings of celebrities wearing their jewellery, steal the footfall. As a result, sales are down by 60% over five years,” said Jayanti Patel, another jeweller.

So, what kind of variety? “We have a lot of variety that we buy from wholesalers. The concept of having your own goldsmith creating specific designs for you is a costly venture these days.

However, we do cater to special demands. When a lady from Bharuch wanted a Balika Vadhu set, we showed her some designs similar to the one worn by the telly actor and she lapped it up.

Hence, our stock is usually up to date with the latest trends inspired by movies and telly serials to suit customer needs,” said Rajesh Soni, a jewellery retailer.

Harshvardhan Choksi, president of the 111-year-old Ahmedabad Chokshi Mahajan, said sales have been down by 30% till date this year. So, is the slowdown here to stay? “Enthusiasm among people to buy gold on Pushya Nakshatra day was somewhat missing. So, we are hoping sales to catch up on Dhanteras. The marriage season is round the corner, too. So, sales are bound to go up around that time,” said Choksi.

With 550-600 shops in the old market belonging to retailers, wholesalers and bullions, he insisted that business was here to stay. “Gold retailers and jewellery showrooms on CG Road and the big jewellery brands pump in a lot of money to publicise their stores and they recover the costs from their customers. Also, making charges are at least 20% higher than what we charge.

In fact, we offer zero making charges many a time. Of course, buying gold is a matter of trust,” stated Choksi.

Though small in size these bullion shops cater to all kinds of needs customers can expect from bigger showrooms.