Dhanteras: Pricey gold, silver unlikely to deter buyers.

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Despite soaring gold and silver prices, jewellers are not expecting much of an effect on the sale of gold and silver jewellery on the auspicious day of Dhanteras.

Gold prices have surged by over 25% in the past year. Last Diwali, gold was priced at Rs 62,000 per 10 gm, and it is currently trading at Rs 78,500. Meanwhile, silver price currently stands around Rs 1 lakh per kg. Gold is expected to touch 80,000 per 10 gm soon.

While a section of gold jewellers are seeing subdued sales, large retailers continue to see good footfall.

“Despite the traditional significance of purchasing precious metals on this day, many consumers are opting to hold back, leading to a noticeable decline in footfall at jewellery stores,” Delhi-based Jai Kabra, founder of Resham Group.

Several jewellers are giving options to exchange old jewellery with new ones because of high gold prices. Besides Resham Group, Kalyan Jewellers is also providing the same.

However, big jewellers such as Kalyan Jewellers are experiencing an increase in footfall across their showrooms amid festive and wedding season.

“Despite the rising gold prices, consumer confidence in gold jewellery as a long-term investment has strengthened, with many customers viewing it as a reliable option for substantial returns. A growing number of these customers are also opting to exchange their old gold jewellery for newer designs, which helps offset costs and makes their purchases more affordable,” Ramesh Kalyanaraman, executive director, Kalyan Jewellers, said.

“We are witnessing renewed interest from millennial and Gen-Z consumers, who are looking to make timely investments in the yellow metal. This has led to acceleration in demand for dual tone jewellery as well as platinum jewellery pieces,” Kalyanaraman stated.

Like Kalyan Jewellers, Rajesh Rokde, director at Nagpur-based Rokde Jewellers is also witnessing rise in gold demand.

According to him, gold demand will increase during the festive season because of the long weekend, while both Diwali and Dhanteras will be celebrated for two days each. Hence more footfall will likely be recorded.

Ajay Kedia, head of Mumbai-based firm Kedia Advisory said that by next Diwali, gold prices will touch Rs 100,000 per ten gram, while silver will hit Rs 125,000 per kg. According to him, instead of buying physical gold, investing in gold ETF can also be considered as it doesn’t involve spending on making charges.https://www.newindianexpress.com/business/2024/Oct/25/dhanteras-pricey-gold-silver-unlikely-to-deter-buyers

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