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Indians' love for Diwali glitters pushes gold sales to a record high on Dhanteras

Indians' love for Diwali glitters pushes gold sales to a record high on Dhanteras

In spite of economic uncertainties on the horizon, Indians flocked to buy gold & silver, boosting jewellery sales beyond the COVID-induced slowdown…

As per its estimates, due to the two-day Dhanteras festival, sales of gold and silver coins, notes, sculptures, and utensils in the country peaked at Rs 25,000 crore rupees. As per its estimates, due to the two-day Dhanteras festival, sales of gold and silver coins, notes, sculptures, and utensils in the country peaked at Rs 25,000 crore rupees.

After two years of lull, the gold and jewellery market finally lit up - boosting sales beyond the COVID-induced slowdown. In spite of economic uncertainties on the horizon, with a high probability of a global recession in the next few months, sales of gold and silver touched the highest levels during the last few days.

According to estimates by industry body All India Jewelers and Goldsmith Federation (AIJGF), sales of gold and silver coins and bars - the most sought-after items during Dhanteras - scaled new highs this time.

“The Indian gold industry has fully recovered from the Covid crisis as the demand for gold in India has reached its highest level! India's gold demand grew by up to 80 per cent in the domestic market in the July-September quarter following a strong pick-up in economic activity and improved consumer demand,” said Pankaj Arora, National President at AIJGF.

As per its estimates, due to the two-day Dhanteras festival, sales of gold and silver coins, notes, sculptures, and utensils in the country peaked at Rs 25,000 crore rupees.

“The excessive footfall in the markets across the country on Saturday (22 October) and Sunday (23 October) on the occasion of Dhanteras shows the eagerness of the people to buy Indian goods and too from offline markets. After the two years recession in the market due to COVID pandemic, the unending outbreak of customers in markets has brought cheers for the traders,” said Praveen Khandelwal, Secretary General of the leading industry body Confederation of All India Traders (CAIT).

According to Lakshmi Iyer, Chief Investment Officer (Debt) & Head Products, Kotak Mahindra Asset Management Company, while gold assumes a top position in buyers’ priority list in the run-up to Diwali, this time the economic uncertainties may have played a role in boosting demand for gold further. “While global turbulence has seen volatility across asset classes, gold remains well positioned, though returns in the near term have been muted. Gold ETFs are a great way to own gold without the hassle of buying physical gold at varied retail pricing. Gold ETF folios have seen a net increase  CY2022 to date and we expect this trend to continue going forward as well,” he said.

Jewellers have also noticed the trend among buyers. Suvankar Sen, MD & CEO, Senco Gold & Diamonds says in the last few days, the firm has witnessed many pre-booking of jewellery for final purchase on the day of Dhanteras.

“Customer sentiments are also looking positive due to the recent reduction in local gold prices. Footfalls at stores since morning have been very good and we expect it will be more than what we witnessed last year. We are witnessing a surge in demand for men’s jewellery, especially in the form of chains and rings. Bridal customers for upcoming wedding season have also started their buying and is approx 25-30 percent of total customer sales,” he said.

According to him, demand for traditional silver and gold coins is steady, while Senco has also recorded a 40 per cent spike in sales of digital gold, driven by millennials.

Published on: Oct 24, 2022, 1:22 PM IST
Posted by: Saurabh Sharma, Oct 24, 2022, 1:14 PM IST
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