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Gold Demand Rises 30% as Prices Drop; Silver Purchases Up 10%
Sentiment: NeutralHigh Priority
What Happened?
As gold prices fell from Rs 1.8 lakh to Rs 1.42 lakh per 10 grams, Indian consumers bought 52 tonnes of gold worth Rs 72,000 crore during Dhanteras and Diwali, with silver demand also rising by 10%.
Key points
- Gold sales volume declined by nearly 50% in the current fiscal year through September.
- Consumers purchased 300 tonnes of silver valued at Rs 5,400 crore during the celebrations.
- Jewellers reported strong business during Dhanteras and Diwali, indicating a recovery in demand.
- Gold prices corrected from Rs 1.8 lakh to Rs 1.42 lakh per 10 grams, encouraging purchases.
- Natural diamond sales increased significantly, with a 250% rise on Dhanteras.
Key insights
- The rise in gold purchases could lead to increased production and supply chain activity in the jewelry sector.
- Higher consumer spending during festivals may positively impact local economies.
- The trend of buying gold during price corrections may influence future consumer behavior.
Why it matters
The increase in gold and silver purchases indicates a recovery in consumer confidence and spending during festive seasons.
Entities
India Bullion and Jewellers Association· OrganizationPrime Minister Narendra Modi· PersonC Krishniah Chetty Jewellers· Company
Source
Times of India
