Small is big in online gold buying
When it comes to buying gold online, small seems to be big. Around 40% customers of e-commerce company Bullion India buy one gram of gold. The company has offered 2% discount to buyers during the upcoming Diwali festivals. Gujarat accounts for around 12-15% share in the Rs500-crore gold market on e-commerce platform.
The buying of yellow metal on e-commerce is increasing. The market for online gold purchase was around Rs200 crore two years back which has increased to Rs500 crore, said Ketan Kothari, director of Bullion India.
He also said the turnover of his company is Rs50 crore and the target is to take it to Rs150 crore in the current financial year. Gujarat accounts for 15% of the company’s total business.
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He also said that the purchase of gold using e-commerce platform turns out to be cheaper. “We offer 99.5% pure gold which is 5-8% cheaper compared to other players and banks.
To add on the festive mood, we have announced 2% flat discount on purchase of gold and silver during Diwali festivals,” he said.
The director of the company also believes that there is a huge pent up demand for gold. “Last Dhanteras and Akshay Tritiya were bad, so we expect that upcoming Dhanteras may witness bumper buying of gold. However, all depends on the government move on duty cut,” he said.
Kothari did not expect gold prices to fall in near future. The company has 22 centres for physical delivery of gold, including one each in Ahmedabad and Surat. It also plans to set up another centre in Vadodara.
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