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As price jumps, gold buyers keep it light this Dhanteras
There has been a 10-15% year-on-year drop in jewellery and gold demand by volume this Dhanteras, according to initial estimates, with consumers mostly purchasing lightweight and diamond-studded jewellery even as the young crowd returned to retail outlets, leading jewellers said. Yet, value sales of the yellow metal increased by up to 25% due to high prices, with most consumers preferring jewellery in the price range of ₹1-3 lakh, they said.
Bull run in silver may continueMany consumers opted for silver jewellery, pushing silver demand up by 30-35%, jewellers said. “What is interesting is that the young crowd is back to the retail outlets to buy jewellery as the precious metal has become lucrative to them because of its high returns,” said Saiyam Mehra, chairman of All India Gem & Jewellery Domestic Council. “The current volatility in the stock market has also prompted them to look at gold, where the bull run is yet to be over.”
He said total gold sales this Dhanteras is estimated to be around 22 tonnes, down 12% from 25 tonnes last year. “Reports trickling in from pan India show that lightweight and studded jewellery, jadau, and kundan jewellery have been preferred by the customers,” Mehra said. Gold prices have appreciated by more than 30% this Dhanteras compared to last. The price of gold on Tuesday, when Dhanteras was celebrated, touched a high of ₹81,211 per 10 gm with 3% goods and services tax, while silver touched ₹1,00,809 per kg.
Source: https://economictimes.indiatimes.com/