High Gold Prices Dampen Dhanteras Sales Outlook; Silver Shines With Strong Returns

Gold prices may have soared this year, but the festive outlook remains dim. Analysts forecast a dip in Dhanteras gold sales, with demand expected to fall by 15-16%, according to the India Bullion and Jewellers Association. While last year’s sales reached 30-35 tonnes, volumes are now likely to range between 25 and 30 tonnes. However, the high prices could keep the value of sales steady at approximately ₹20,000-23,500 crore. A customs duty reduction to 6% in July has kept India’s gold price increase lower than the global rise. Despite this, experts predict gold could reach ₹85,000 per 10 grams next year. Meanwhile, silver has outperformed gold, offering 36% returns in Samvat 2080, compared to gold’s 30% and the Nifty 50’s 26%.

Silver’s industrial demand and appeal among younger buyers have driven its recent popularity. Even after the festive period, gold and silver demand may remain high, with the upcoming wedding season set to boost sales further. Despite high prices, both metals continue to attract investors and consumers alike.