Record Gold Prices Dampen Dhanteras Sales; Volumes Predicted To Dip By 10%

Gold sales on Dhanteras are estimated to drop 10% in volume terms year-on-year on sharp 33% annual rise in rates of the yellow metal, according to industry players.

Since Dhanteras -- the most auspicious day in the Hindu calendar for buying items ranging from precious metals to utensils -- is celebrated on two days till 1.11 pm on Wednesday, jewellers are expecting more footfalls in both online and offline stores.

Gold prices have surged 33% to Rs 81,400 per 10 gram in the national capital, as compared to Rs 61,200 on Dhanteras last year, which was celebrated on Nov. 11, 2023.

Silver prices increased 35% to Rs 99,700 per kg on Tuesday compared to Rs 74,000 on Dhanteras day last year.

All India Gem And Jewellery Domestic Council Chairman Saiyam Mehra said, "The buying trend is good despite high gold prices. In volume-wise, we are expecting 10% less than last year, while in terms of value it will be 20% more."

The sale of recycled jewellery also did well.

Gold coins in 2, 3, 4, 5, and 8 grams and light weight jewellery like chains, earrings and bracelets were selling more, he said.

The Dhanteras festival is spilled over to Wednesday afternoon, therefore, 'We expect more business.'

World Gold Council Regional CEO, India, Sachin Jain said, "I think the consumption of bullion will be much stronger than jewellery."

Kalyan Jewellers Executive Director Ramesh Kalyanaraman said, "Despite higher gold prices, demand has remained strong."

Conservative buyers favoured Shagun coins, while lightweight or 18k jewellery attracted younger shoppers. With the upcoming wedding season, there was interest in elaborate pieces, he said.

PNG Jewellers Chairman and Managing Director Saurabh Gadgil said, "We are expecting volume to decline 5-10% due to high prices."

Senco Gold and Diamonds MD and CEO Suvankar Sen, "In the overall sales, 30-40% purchases were wedding jewellery and the rest were those buying a token to mark the auspicious festival."

The high price will impact the volume which is expected to dip 15% from last year at the same time, while the value will be up 12%, he added.

Many took advantage of the available offers and discounts to make purchases, he said.

On the day of the festival, smaller items and coins were more in demand.

Delhi-based Puran's Jewellers owner Rakesh Kumar said bookings and orders have been very strong.

Astrologer Prince Jain said the muhurat for Dhanteras buying is till 1.11 pm on Wednesday. People buy precious metal, utensils to automobiles for prosperity. Meanwhile, automakers posted strong sales on Dhanteras.

Mercedes-Benz India Managing Director and CEO Santosh Iyer said the luxury car market leader recorded its best-ever sales this Dhanteras.

Kia India said it has delivered around 6,000 cars on the occasion, while JSW MG Motor India announced the delivery of over a hundred electric vehicles in a single day in Delhi-NCR.