Jewellers report brisk Dhanteras sales as gold price drop lures buyers; volumes seen flat

Mumbai/New Delhi: Jewellers reported strong demand for gold and silver on Dhanteras on Friday, with gold sales by value expected to rise 15-20 per cent to about Rs 60,000 crore, as a recent drop in prices drew buyers, industry officials said.

Volumes, however, are likely to remain roughly flat from a year earlier because prices are still well above last year's levels, said Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council (GJC).

Dhanteras, which falls two days before Diwali, is considered the most auspicious day in the Hindu calendar to buy precious metals.

"The total gold business across India on the occasion of Dhanteras is estimated to be approximately Rs 60,000 crore, according to our preliminary assessment," Rokde told PTI.

Gold in the national capital fell 20 per cent to Rs 1,46,300 per 10 grams (24-carat, including taxes) on Friday from a record Rs 1,83,000 on January 29. Prices remain well above the Rs 1,32,400 seen on last year's Dhanteras on October 18.

Silver has dropped 52.4 per cent from its January 29 peak of Rs 4,04,500 per kg to Rs 1,92,500, but is still above the Rs 1,70,000 per kg recorded on Dhanteras last year.

Consumers are largely opting for lightweight and 18-carat jewellery and other pocket-friendly items, Rokde said, adding that retailers had seen improved sentiment after gold prices eased over the past four to six months.

The GJC expects silver sales to rise 30 per cent in value and 10 per cent in volume.

GJC Vice Chairman Avinash Gupta said footfall was higher than last year and strong advance bookings had supported sentiment. Western and northern markets were seeing stronger activity.

Kalyan Jewellers Executive Director Ramesh Kalyanaraman said the price correction had given an added boost to festive purchases, noting that 22-carat gold eased to Rs 13,150 per gram from Rs 13,385 a day earlier.

He said customers were favouring pendants, bangles, chains and smaller gold and silver coins, and that smaller cities such as Jaipur, Dehradun, Surat, Belgaum, Ara and Raipur were seeing strong traction, including from first-time buyers.

Several retailers reported sharp gains. Senco Gold CEO Suvankar Sen said sales value had risen over 25 per cent from a year earlier, with higher footfall and strong participation from wedding shoppers.

PNG Jewellers CMD Saurabh Gadgil said industry indications pointed to 25-30 per cent growth in value, helped by easing prices, strong bookings and a long Diwali weekend.

He said exchange of old gold was playing a big role, including in smaller cities.

PC Jewellers Managing Director Balram Garg said sales were up 30-35 per cent in volume and 45-50 per cent in value.

The All India Jewellers and Goldsmith Federation, part of the Confederation of All India Traders, said gold and silver sales had exceeded Rs 66,000 crore nationwide over the past several days, with Delhi's bullion markets recording business of more than Rs 10,000 crore.

Gem and Jewellery Export Promotion Council Chairman Kirit Bhansali said higher prices were making consumers more discerning, but had not dented the desire to buy, with old-gold exchange and wedding demand providing support.

Sachin Jain, India CEO of the World Gold Council, said retail walk-ins were strong and buyers were purchasing across jewellery, coins, bars, exchange-traded funds and digital gold.

MMTC-PAMP Managing Director Samit Guha said buyers were increasingly choosing smaller coins and bars and spreading purchases across different price points rather than committing to large buys at once.

India is the world's second-largest gold consumer after China and one of the largest global importers.