The jewellery industry is looking at a dark Dhanteras and Diwali as it expects sales to decline at least 30 per cent over last year in spite of the ongoing price corrections.

The industry’s only hope is in falling prices, which had scaled a record of Rs 4,000 a gram last month, to get better footfalls. Currently, the metal is trading at around Rs 3,800 to a gram.

In 2018, the industry managed to close with flat sales over 2017 Diwali season.

“Gold prices have soared to Rs 40,000 per 10 gram last month, just in the beginning of the festival season and still remains high. This has further dampened the already weak consumer sentiment.

“But if prices continue to correct during this week there may be some improvement in retail demand. However, the overall business will still be 30 percent lower than last year,”  All-India Gem & Jewellery Domestic Council chairman Anantha Padmanaban told PTI on Tuesday.

World Gold Council managing director for India Somasundaram PR said this Diwali is not going to be very shiny following very high prices and already poor consumer sentiment dented by the deepening all-round gloom in the economy with every key indicators contracting or plunging month after month for nearly a year.

“Buying is still happening at the very high-end, but bulk of purchases, that is the low-to-mid range, are affected badly. Looking at the current trend we may have to revise the overall 2019 demand target, which was earlier predicted at 750-850 tonne,” he said.

Somasundaram said imports were much higher than demand over several quarters since Q1 of 2017, but July and August saw imports plunging 60 per cent, reflecting the already weak trade sentiment.