BENGALURU: There is an uptick in demand for precious metals as Dhanteras, the festival of wealth and prosperity, and Diwali are around the corner. This festive time is considered to be one of the best days to purchase items.
On Friday, gold prices also saw a marginal dip, as 10 gm of 24k gold and 22k gold stood at Rs 50,450, and Rs 46,250, respectively, from the previous close of Rs 50,560 and Rs 46,350. Retailers say festive sentiment is positive among consumers.
On the back of strong demand during the first two quarters, clubbed with favourable gold prices, Ramesh Kalyanaraman, executive director, of Kalyan Jewellers, said they are confident that the demand momentum will pick up the pace with more consumers opting to make investments in the yellow metal. The jewellery retailer is already seeing an uptick in consumer demand in the run-up to festive occasions such as Diwali, Kali Puja and Lakshmi Puja.
“We are witnessing a paradigm shift in buying behaviour among consumers, as more consumers are now preferring organised jewellery players,” he said. Apart from silver and gold, platinum jewellery is also moving in a positive direction. “This year’s H1 has seen tremendous recovery and phenomenal growth, with weddings and the festive season returning after two years.
With the unlock phases post-covid, platinum has been able to maintain a consistent and strong position in the Indian jewellery industry,” said Vaishali Banerjee, managing director, PGI – India. Demand for precious metals jumped by 40% (YOY) ahead of the Dhanteras with gold contributing to 70% of the overall demand during this festive season, said the latest Justdial Consumer Report.
Mumbai, Hyderabad, Delhi and Bengaluru topped when it comes to demand for gold jewellery among tier-1 cities. Delhi topped the demand for gold coins contributing to nearly 41% of the searches and Mumbai for gold bars with 34% of the demand, said the report.
Though overall there is a positive sentiment, Somasundaram PR, regional CEO, India at World Gold Council, said unlike the Diwali season of 2021, this season may not have the advantage of pent-up demand or savings from muted wedding celebrations fuelling higher gold purchases. Apart from retailers, fintech platforms are also offering various discounts to attract more consumers on account of the festive season.
