Dussehra Gold Prices Surge: Consumption drops 10% as buyers shift to jewellery
Tue Oct 15 2024
A Rs 14,000 per 10 gm increase in its price this Dussehra compared with a year earlier has brought down the consumption of gold in India by 10% in volume terms, two national jewellery associations said. Also, consumers preferred buying jewellery this year compared with last year when gold coins and bars were more in demand.
Last Dussehra, gold was priced at Rs 61,700 per 10 gm, while this time, it costs Rs 75,700, an increase of 22.69%.
Gold is considered a symbol of wealth and prosperity. Indians buy gold during Dussehra because it is considered an auspicious day to do so. Gold chains, mangalsutra and bangles were the choice this Dussehra. .
Consumers also bought diamond-studded jewellery in the price range of Rs 10,000 to Rs 2 lakh, with the trade witnessing a 10% increase in demand from last year.
“Gold requirement in diamond-studded jewellery is less and mostly 18 karat or 14 karat gold is used,” said Colin Shah, managing director of Kama Jewelry.
Also, prices of polished diamonds have fallen this year as global demand is weak. So, diamond jewellery has become cheaper by 5-10% compared with last year, resulting in higher offtake.
Prithviraj Kothari, president of the India Bullion & Jewellers Association, said: “Volume-wise the offtake has fallen by 10% this Dussehra. But jewellers are happy as the realisation has gone up by more than 20% (because of higher price). In the last one year, gold has given good returns and the consumers have understood that. The bull run in gold is yet to be over.”
Market players expect gold to touch Rs 85,000-90,000 per 10 gm by next year’s Dussehra.
“What is interesting is that we are seeing a lot of enthusiasm among the young crowd in the age group of 25-40 years to purchase gold jewellery. We did not see this trend last year. Maybe the good return that the yellow metal has given in the last year is attracting this crowd,” said Rajesh Rokde, vice-chairman of the All India Gem & Jewellery Domestic Council. “Some jewellers have witnessed a 10% drop in gold volume offtake, while a large section has seen a flat demand,” he said.
Source: https://economictimes.indiatimes.com/