New Delhi/Mumbai: Two-day pre-Diwali Dhanteras buying of gold and silver began on a positive note on Saturday with some big jewellers and an industry body anticipating a further pickup in demand by Sunday and up to 20 per cent higher sales than the last year.
High gold prices have not deterred consumers from buying on Dhanteras, which is considered the most auspicious day in the Hindu calendar for buying items ranging from precious metals to utensils, to other valuables.
On Saturday, gold prices were ruling at Rs 50,139 per 10 grams, excluding taxes, in the national capital, much higher than Rs 47,644 per 10 grams on Dhanteras day in 2021.
Normally, 20-30 tonnes of gold is sold on a Dhanteras day.
“As this year Dhanteras is spread over the weekend, we expect the momentum to increase towards evening and tomorrow,” All India Gem And Jewellery Domestic Council Chairman Ashish Pethe told PTI.
The market response has been good on the first day of Dhanteras and is likely to continue on Sunday as well, he added.
Asked about expected growth, Pethe said: “In terms of value it is expected to be 5-10 per cent more than last year as the gold prices are 5 per cent more than 2021 Dhanteras. However, in terms of volume it is likely to be at par with the last year,” he said.
World Gold Council Regional CEO, India, Somasundaram PR said the rural demand will hold the key to whether the sales beat last year’s Dhanteras and wedding season figures.
“The current year does not have the benefit of a pent-up demand and higher savings caused by lock-down that assisted last year’s season to post a record demand,” he said.
In addition, wallet squeeze due to inflation, hike in customs duty and depreciation in INR have all neutralised the impact of the drop in global price, leaving gold prices hovering around Rs 50,000 per 10 grams in India, Somasundaram said.
Among Jewellers, Kalyan Jewellers Executive Director Ramesh Kalyanaraman said: “On the back of strong pre-booking numbers, we are expecting good customer footfall across our showrooms, especially in the non-South markets.”
The Shubh Muhurat begins this evening and we are gearing up for longer business hours, in lieu of that, he added.
So far, the majority of our customers have opted for lightweight token purchases such as mangalsutra, bracelets, chains, etc. Apart from gold coins.
In line with the upcoming wedding season, we are also receiving good response for heavier designs from our wedding collection,” Kalyanaraman said.
Overall, he expects that Dhanteras spread over a weekend will result in positive consumer sentiment.
Kolkata-based Nemichand Bamalwa and Sons Kolkata Founder partner Bachhraj Bamalwa said the response has been positive so far.
The footfalls at four of our showrooms are very good so far and people are buying gold and silver coins when compared to jewellery.
“We expect 15-20 per cent increase in volume of sales this time compared to last Dhanteras,” he said.
In Maharashtra, PNG Jewellers Chairman and Managing Director Saurabh Gadgil said the footfalls have been quite good since morning as people are coming in to either pick up their pre-booked jewellery or to buy gold and silver coins.
“Overall we expect a good Dhanteras this weekend,” he added.
According to the Confederation of All India Traders (CAIT), around Rs 40,000 crore of business is expected to be generated on this Dhanteras, which is spread over the weekend, on the back of positive consumer sentiment.
Delhi-based Khanna Gems Chairman Pankaj Khanna said, “We are seeing higher sales in both the offline and online markets. ….The offline sales saw a 20 per cent increase while the online sales grew 15 per cent as compared to last year.”
The overall gold sales is expected to see a 25 per cent increase this time, he added.
Senco Gold and Diamonds Managing Director and CEO Suvankar Sen said that there has been a lot of positivity since Friday.
“Moreover, as this year Dhanteras falls on a weekend, we expect it will be very good. Footfalls are steady since morning and are mostly for the pre-booked orders,” he noted.