According to rough estimates, the e-commerce market of gold and silver in the country has surpassed Rs 500 crores. The state of Gujarat alone accounts for 10-15% of the total online sales. Jewellery and coins are the items with highest demand. Two years back, the online market was worth only Rs 300 crores.
According to Ketan Kothari, director, BullionIndia.in, the ease of placing orders, door step delivery and zero-brokerage are the primary reasons for sudden rise in online sales. Surveys indicate that majority of customers who indulge in online purchase of gold and silver items belong to the age group between mid-20’s and mid-30’s. More surprisingly, 80% of the online customers are males, Kothari noted. Furthermore, over 40% of the items sold online are one-gram gold coins.
On the other hand, the major challenge to online gold and silver jewellery sale is that products sold online are 2%-3% more expensive when compared with the retail market prices.
The online bullion dealers have tie-ups with empanelled brokers in order to ensure smooth delivery of physical gold to the customer. Also, the customers can also sell and encash their gold and silver holding.
According to trade sources, the slowdown in gold market has affected online sales too. But with the advent of festive season, the demand is likely to pick up. The bullion sales through online platform are expected to triple during the current fiscal.