The sale of gold and silver for the occasion of Dhanteras began on a positive note, witnessing a robust turnout in stores across the national capital, buoyed by the recent dip in precious metal prices.
The softening of gold prices has instilled confidence among traders, who are optimistic about surpassing last year's sales figures. Notably, gold prices have experienced a recent decline, dropping by Rs 800-1,500 per 10 grams (24 carats) from the peak observed on October 28, when prices reached Rs 63,000.
This favorable trend in pricing has attracted a significant number of buyers, marking a promising start to the festive season's gold and silver sales. The positive sentiment, coupled with the ongoing festive fervor, is contributing to heightened activity in stores as individuals take advantage of the opportune moment to make their Dhanteras purchases.
Minal Srivatsava, 48, who had come to buy a gold chain for her husband on the occasion of Dhanteras at a Lajpat Nagar-based jewellery store, said: “We wait for the Dhanteras to buy jewellery.”
"The store is a bit crowded today as people are here to buy the jewellery or coins but I will buy a gold chain for my husband," she added.
On Dhanteras, a day considered auspicious for buying gold and silver, most jewellery stores in the national capital experienced substantial footfall. The festive occasion, coupled with the recent dip in gold prices, attracted a considerable number of customers to explore and make purchases at these outlets.
The increased foot traffic is indicative of the festive fervor and the enthusiasm of buyers to make investments in gold and silver on this propitious day.
Eshwar Surana, Managing Director, Raj Diamonds said: "We saw robust demand during this Dhanteras and have already been witnessing strong footfall across our showrooms... Overall we witnessed surge of around 20 per cent in demand this time compared to last year.”
He said: “We also witnessed a surge in advance bookings, with around 15 per cent of customers already reserving their favourite diamond jewellery for Dhanteras.”
Surana highlighted that, in terms of design, diamond jewellery adorned with "prized colored gemstones" is emerging as a significant trend during this season.
"Along with Diwali demand, this positive trend will gain momentum as lakhs of weddings are planned in the coming months. This optimism is fueled by positive consumer sentiment, driven by a rapidly growing economy, increased disposable income, and the burgeoning influence of Gen Z and millennials," Surana said.
"We are confident that the demand momentum will continue to further accelerate till the end of the year," he added.
Ajoy Chawla, the CEO of the Jewellery Division at Titan Company Ltd, commented on the buying trends during the occasion of Dhanteras, noting a noteworthy upswing in customer sentiment over the past three weeks of the festive season. This observation indicates a positive shift in consumer behavior and a heightened interest in making purchases, reflecting the festive cheer and the auspicious nature of Dhanteras for buying gold and silver. The increased customer sentiment is likely contributing to a buoyant market and higher sales during this festive period.
gold prices, coupled with the upcoming Dhanteras festivities on Friday and Saturday, serve as additional positive factors that "instill confidence in us".
"We are optimistic about achieving new highs in our sales and performance this festive season," he said.
Suvankar Sen, MD and CEO of Senco Gold and Diamonds, said: "We have seen an overall growth of 10-12 per cent in terms of value."
"Due to the higher gold price and recent fluctuations in its prices, volume growth has been in low single digits, while value growth has been in low double digits," he added.
Sen further said that notably, “we have experienced a substantial 25-30 per cent growth in diamond jewellery, which shows that the younger generation is willing to experiment with more Western designs”.
He said that there has been a significant uptick in men's jewellery, including chains and rings, with a remarkable 15 per cent growth.
“Either they are purchasing for themselves or their spouses are buying for them, or brides are selecting for their grooms,” Sen added.
He further said that platinum has also performed well, with 15-20 per cent growth. "This suggests that young consumers are interested in white metals, such as platinum and rose gold. We have seen customers footfalls across categories, including wedding shoppers and those looking to make auspicious purchases for Dhanteras. Overall sentiment was very positive and despite the challenges of high prices and global uncertainty, Indian consumers continued to show faith in gold and diamond jewellery, as they enthusiastically celebrate Dhanteras."
Bablu Kumar Singh, who bought a 20 gm silver coin on Dhanteras, said that the occasion is meant to buy some gold or silver items. "Thus have bought a 20 gm silver coin of MMTC."
Vikas Singh, MD and CEO of MMTC-PAMP said: "Gold holds profound cultural significance, especially during Diwali and Dhanteras. These occasions witness families embracing age-old customs of purchasing gold, as an investment and a cherished ritual. Adding gold to an investment portfolio is a timeless strategy since it has consistently proven its worth as a safe and reliable investment over the years."
"As a time-honoured, secure investment, gold will continue to act as a symbol of our traditions and harbinger of prosperity. Therefore, we anticipate robust demand during this festive season," he added.
(With Agency Inputs)
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