With gold prices correcting by around 13% over the past six months and 5% in the past month, gold sales this Dhanteras are expected to register a 15-20% growth in volume, according to industry players and jewellers.
“We are witnessing encouraging consumer sentiment this year, with demand improving compared to last year. The recent correction in gold prices has encouraged buyers to return to the market. We expect sales volumes to grow by approximately 20% over last year’s Dhanteras, supported by festive demand and the upcoming wedding season,” said Joy Alukkas, Chairman and Managing Director, Joyalukkas Group.
The double-digit growth in sales comes despite gold prices being higher this year than last year. According to the India Bullion and Jewellers Association, 99.9-purity gold was priced at around Rs 1.30 lakh per 10 grams during last Dhanteras, compared with around Rs 1.41 lakh this year. However, the current price is lower than the record high of Rs 1.83 lakh that the metal touched in January this year.
“We are witnessing strong consumer enthusiasm across markets this Dhanteras, with showroom footfalls picking up significantly. The correction in gold prices has certainly provided an added impetus to festive purchases,” said Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers.
According to industry players, purchasing patterns have also changed this year, with consumers from tier-2 and tier-3 cities driving sales. There has also been a shift in jewellery preferences, with consumers increasingly opting for lightweight jewellery and, in some cases, lower-carat gold instead of sticking to 22K gold.
“We are seeing a clear shift towards lower caratages, particularly 14K and 18K gold, as well as fine silver for festive gifting. Moving to 14K or 18K allows a consumer to get the look and craftsmanship of a festive piece without stretching their household budget. Second, consumers are moving away from buying heavy, locker-bound sets. They are evaluating pieces on cost-per-wear,” said Ankur Daga, Co-Founder and CEO, Angara.
According to some experts, the government's recent move to halt investments in gold ETFs has also pushed consumers towards physical gold investments, particularly coins and bars. With the wedding season around the corner, the industry expects the momentum to continue beyond Dhanteras. Consumers are making token purchases ahead of weddings, with plans to return for larger purchases closer to the occasion.