Gold and silver sales across India witnessed a significant uptick on the occasion of Dhanteras this Friday, driven by a recent softening in prices that encouraged festive buying. Industry estimates suggest that the total gold business for the day reached approximately Rs 60,000 crore. While the value of sales is expected to climb between 15% and 20% compared to the previous year, the physical volume of precious metals sold is projected to remain relatively flat, as current prices continue to trade above those recorded during the same period last year.
Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council (GJC), highlighted that while the overall value of trade is substantial, the sustained price levels have influenced purchasing behavior. Gold in the national capital, for instance, is trading significantly higher than the levels seen during last year's Dhanteras on October 18. Similarly, while silver prices have seen a decline from their January peak, they remain well above the costs observed during the previous year's festival, prompting consumers to adopt a more cautious approach to the weight of their purchases.
To navigate these price dynamics, buyers are increasingly pivoting toward pocket-friendly options. According to industry officials, there is a clear preference for lightweight 18-carat jewellery, as well as smaller gold and silver coins. Retailers have observed that the easing of prices over the past four to six months has successfully improved consumer sentiment, leading to higher footfall in stores and a boost in advance bookings. This trend is particularly evident in western and northern markets, as well as several smaller cities including Jaipur, Dehradun, Surat, Belgaum, Ara, and Raipur.
Market participation has been further bolstered by the upcoming wedding season. Retailers have reported that wedding shoppers are playing a significant role in sustaining the momentum of the market. Furthermore, the exchange of old gold has become a vital component of this year's trading, allowing consumers to acquire new items despite the higher per-gram costs. Organizations such as the All India Jewellers and Goldsmith Federation have noted that nationwide sales for gold and silver combined have exceeded Rs 66,000 crore over the past several days, with Delhi’s bullion markets alone contributing more than Rs 10,000 crore to that total.
Reflecting on the consumer response, Senco Gold CEO Suvankar Sen noted a sales value growth of over 25% year-on-year, supported by strong participation from customers planning for future nuptials. Similarly, PC Jewellers reported gains in both volume and value, with other industry leaders observing that buyers are diversifying their purchases across various price points, including bars, digital gold, and exchange-traded funds, rather than making single large-scale commitments.
As India continues to hold its position as the world's second-largest consumer of gold, the industry remains optimistic about the long-term impact of these festive trends. The GJC specifically noted that silver sales, in particular, are expected to see a rise of 30% in value and 10% in volume. Despite the discerning nature of today's consumers, the traditional significance of the day remains a powerful driver for the sector, effectively balancing the constraints of higher market prices with the enduring cultural demand for precious metals.
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