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Gold and silver purchases witnessed strong demand on Dhanteras on Friday, November 6, with jewellers reporting higher showroom footfalls and advance bookings as a recent correction in precious metal prices encouraged consumers to make festive purchases.
While sales value is estimated to have risen across the industry, buyers largely preferred lightweight jewellery, smaller coins and lower-carat designs, reflecting a shift towards more affordable purchases amid elevated gold prices.
Gold sales by value are estimated to have increased 15-20% year-on-year to around ₹60,000 crore, according to preliminary estimates by the All India Gem and Jewellery Domestic Council (GJC).
However, the quantity of gold sold is likely to remain broadly unchanged from last year, as prices continue to be higher than their year-ago levels.
"Total gold business across India on the occasion of Dhanteras is estimated to be approximately ₹60,000 crore," said Rajesh Rokde, Chairman, All India Gem and Jewellery Domestic Council (GJC), in comments to PTI.
The GJC expects silver sales to increase 30% in value and 10% in volume.
Avinash Gupta, Vice Chairman, GJC, said showroom footfalls were higher than last year, with advance bookings supporting demand, particularly in western and northern markets.
What drove Dhanteras jewellery sales?
The recent correction in gold prices was one of the factors supporting purchases.
In Delhi, 24-carat gold was priced at ₹1.46 lakh per 10 grams, including taxes, on Friday, compared with ₹1.83 lakh per 10 grams on January 29. However, the price remained above the ₹1.32 lakh per 10 grams recorded on Dhanteras last year.
Silver was quoted at ₹1.92 lakh per kg, down from its January 29 peak of ₹4.04 lakh per kg, but higher than the ₹1.70 lakh per kg recorded on Dhanteras last year, according to PTI.
Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers, said the easing of gold prices provided an added impetus to festive purchases. The company saw demand for lightweight jewellery, including pendants, bangles and chains, along with smaller gold and silver coins and silver artefacts.
He also pointed to demand from Tier II and Tier III cities, including Jaipur, Dehradun, Surat, Belgaum, Ara and Raipur, where the company was seeing increased traction, including among first-time jewellery buyers.
Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers, said early industry indications pointed to 25-30% incremental growth over last year, supported by lower prices, advance bookings and the extended Diwali weekend.
He said demand was visible across wedding and temple jewellery, lightweight gold and diamond jewellery, as well as silver articles. Old-gold exchange was also supporting purchases, particularly in smaller cities.
Lightweight jewellery and smaller-ticket purchases gain preference
The preference for affordable purchases was reflected in the demand for lower-carat and lightweight jewellery.
Colin Shah, Managing Director, Kama Jewelry, said the company recorded a 10% increase in jewellery sales compared with last year. Lightweight studded jewellery witnessed stronger demand, with 18-carat jewellery accounting for around half of sales. Buyers also opted for 14-carat and 9-carat designs, depending on their spending capacity.
Shah said heavy jewellery witnessed selective sales and bookings ahead of the wedding season, while gold coins weighing between 1 and 5 grams also attracted steady interest.
At the industry level, consumers were also using old-gold exchanges to fund fresh purchases.
Kirit Bhansali, Chairman, Gem and Jewellery Export Promotion Council (GJEPC), said higher precious metal prices had made consumers more selective, but had not significantly affected their willingness to buy. Wedding demand and gold exchanges continued to support the market.
Diamond jewellery and investment products also see demand
Demand was not limited to traditional gold jewellery.
Eshwar Surana, Managing Director, Raj Diamonds, said the company recorded around 20% growth in demand during the festive season compared with last year, alongside higher showroom footfalls and advance bookings.
He said some consumers who traditionally purchased gold were also exploring natural diamond jewellery for festive purchases and celebrations. Lightweight designs and coloured gemstones paired with diamonds were among the preferences he highlighted.
Sachin Jain, India CEO, World Gold Council, said retail walk-ins were strong, with purchases spanning jewellery, coins, bars, exchange-traded funds (ETFs) and digital gold.
Samit Guha, Managing Director, MMTC-PAMP, said buyers are opting for smaller gold coins and bars and spreading purchases across different price points rather than committing to large purchases at one time.
Separately, Suvankar Sen, CEO, Senco Gold, said the company had recorded more than 25% growth in sales value compared with last year, supported by higher footfalls and wedding-related purchases.
Balram Garg, Managing Director, PC Jewellers, reported a 30-35% increase in sales volumes and 45-50% growth in value.
The All India Jewellers and Goldsmith Federation, part of the Confederation of All India Traders, said gold and silver sales had crossed ₹66,000 crore nationwide over the preceding several days, with Delhi's bullion markets recording business of more than ₹10,000 crore.
