Gold and silver sales on Dhanteras were almost on a par with last year's figures in terms of volume, and more than a 25% higher in value owing to the steep appreciation, belying apprehensions of a sluggishness due to record prices.
Industry executives said the demand this year was largely for gold and silver coins, with consumers buying in anticipation of a continuation of the rally and, in the process, saving on higher making charges incurred on jewellery.
They said 24-carat gold coins of 10 gm, which sold for about ₹1.40 lakh apiece, found particular favour on Dhanteras, which is considered auspicious by many to buy valuables. Jewellery demand was led by lightweight items in 22- and 18-carat gold, while younger customers were also enthusiastic about less expensive 9- and 14-carat options.
"There was a good rush, with queues in Mumbai's Zaveri Bazar to buy gold and silver coins. The trend from Saturday morning indicates trade will be able to achieve gold volumes of the previous Dhanteras," said Surendra Mehta, national secretary of India Bullion & Jewellers Association.
Strategic Investment
Many consumers had put their purchases on hold hoping for a fall in prices, so there was pent-up demand as well.
“Now that there is no sign of a correction in prices and all economic indicators are pointing towards fresh highs, people have come out to purchase gold,” said Colin Shah, managing director, Kama Jewelry.
Tanishq saw positive signs. Ajoy Chawla, chief executive of the country’s largest gold retailer, said, “Despite record high gold prices, we are witnessing renewed enthusiasm this festive season. Consumers are viewing price volatility as a strategic opportunity to reinvest — whether through gold coins or by upgrading jewellery.”
India had recorded sales of 39 tonnes of gold on Dhanteras last year. This year, Dhanteras muhurat falls on two days, October 18-19. Jewellers sold gold and silver at Friday’s closing prices of ₹1,34,800 per 10 gm and ₹1,74,306 per kg, respectively, with a goods and services tax of 3%.
Gold and silver prices have surged 65% and 81%, respectively, since last Dhanteras. Ramesh Kalyanaraman, executive director, Kalyan Jewellers, said demand outstripped supplies of gold and silver coins in many places as retailers were braced for an adverse impact of high prices.
Southern India is the biggest market for gold in the country, accounting for over 40% of the annual gold consumption of 800-850 tonnes. However, demand for coins was strong pan-India. “The trend shows that we will surpass last year Dhanteras sales both by volume and value,” said Baby George, CEO of Joyalukkas.
Industry executives said the demand this year was largely for gold and silver coins, with consumers buying in anticipation of a continuation of the rally and, in the process, saving on higher making charges incurred on jewellery.
They said 24-carat gold coins of 10 gm, which sold for about ₹1.40 lakh apiece, found particular favour on Dhanteras, which is considered auspicious by many to buy valuables. Jewellery demand was led by lightweight items in 22- and 18-carat gold, while younger customers were also enthusiastic about less expensive 9- and 14-carat options.
"There was a good rush, with queues in Mumbai's Zaveri Bazar to buy gold and silver coins. The trend from Saturday morning indicates trade will be able to achieve gold volumes of the previous Dhanteras," said Surendra Mehta, national secretary of India Bullion & Jewellers Association.
Strategic Investment
Many consumers had put their purchases on hold hoping for a fall in prices, so there was pent-up demand as well.
“Now that there is no sign of a correction in prices and all economic indicators are pointing towards fresh highs, people have come out to purchase gold,” said Colin Shah, managing director, Kama Jewelry.
Tanishq saw positive signs. Ajoy Chawla, chief executive of the country’s largest gold retailer, said, “Despite record high gold prices, we are witnessing renewed enthusiasm this festive season. Consumers are viewing price volatility as a strategic opportunity to reinvest — whether through gold coins or by upgrading jewellery.”
India had recorded sales of 39 tonnes of gold on Dhanteras last year. This year, Dhanteras muhurat falls on two days, October 18-19. Jewellers sold gold and silver at Friday’s closing prices of ₹1,34,800 per 10 gm and ₹1,74,306 per kg, respectively, with a goods and services tax of 3%.
Gold and silver prices have surged 65% and 81%, respectively, since last Dhanteras. Ramesh Kalyanaraman, executive director, Kalyan Jewellers, said demand outstripped supplies of gold and silver coins in many places as retailers were braced for an adverse impact of high prices.
Southern India is the biggest market for gold in the country, accounting for over 40% of the annual gold consumption of 800-850 tonnes. However, demand for coins was strong pan-India. “The trend shows that we will surpass last year Dhanteras sales both by volume and value,” said Baby George, CEO of Joyalukkas.
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