Gold sales up 30% over Dhanteras and Diwali as 52 tonnes sold across the country

The country's gold and silver markets saw brisk business over Dhanteras and Diwali. Gold sales during the period rose 30 per cent over last year. Buyers turned out in large numbers because prices had come down from their record level and the wedding season is approaching.

According to data from the India Bullion and Jewellers Association (IBJA), 52 tonnes of gold were sold across the country during the festive period, worth about Rs 72,000 crore at market prices. Demand for silver also rose 10 per cent, with about 300 tonnes sold, worth roughly Rs 5,400 crore.

A few months ago gold had reached a historic high, with the price of 10 grams touching about Rs 1.80 lakh. International developments and shifts in the market then brought the price down by about Rs 38,000, a fall of 21 per cent in all, to Rs 1.42 lakh. The lower price gave buyers a good opportunity, and they returned to the bullion market in large numbers. Experts said the cut in prices doubled buyers' enthusiasm.

Gold sales were sluggish until September in the current financial year, falling 50 per cent over the same period last year. There were three main reasons. First, high prices: gold was soaring, which reduced the buying power of ordinary customers. Second, import duty: it had been raised. Third, sentiment: some time ago Prime Minister Narendra Modi had appealed to citizens to put off buying gold, after which many customers stayed away from the market for a while. When prices fell just before the festival, the slump ended and customers began buying gold in large numbers again.

According to the IBJA, many people had already begun buying for the wedding season, which starts in mid-November and runs until May. Diwali also fell at the very start of the month, so most salaried people received both their regular pay and their festival bonus. With good cash flow in hand, buyers' purchasing capacity rose, and the bullion market benefited directly. The All India Gem and Jewellery Domestic Council has also confirmed this. The council said customers' long-standing faith in gold remains.

Gold and silver sales in this Dussehra and Diwali festive season were the third highest in 10 years. This emerged from an analysis of the past eight years of business at the well-known Bengaluru jeweller C Krishniah Chetty Jewellers. Although gold prices have risen overall over the past year, buyers took advantage of the dip during the festival and invested and bought jewellery on a large scale. This makes clear that for Indian buyers gold is not just an ornament but also a safe and dependable investment.