A Deepavali Bedazzles by Gold
Experts attribute this resilience to a well-timed customs duty cut, which has kept prices from climbing to Rs 90,000
Gold’s timeless allure bedazzles Indians this festive season too. The All India Gem and Jewellery Domestic Council (GJC), representing 3,500 jewellers nationwide, projects a sparkling 30 per cent spike in retail sales, even as exports falter owing to weaker demand in the United States.
Kamal Singhania, Director, GJC, forecasts that festive gold sales would soar to 120 tonnes, a significant leap from last year's 92 tonnes. Despite gold prices hovering at a lofty Rs 80,000 per 10 grams, consumer enthusiasm remains unwavering.
Experts attribute this resilience to a well-timed customs duty cut, which has kept prices from climbing to Rs 90,000. Silver, too, benefits, with prices steady at Rs 1 lakh per kilo instead of Rs 1.15 lakh.
The story doesn’t end with local demand. On the global stage, gold’s stature continues to rise, with central banks, including India’s Reserve Bank (RBI), turning to the precious metal as a bulwark against economic uncertainty. In 2024, the RBI repatriated over 100 tonnes of gold from the UK and may soon add more.
As of March 2024, India’s gold reserves stood at 822.1 tonnes, with 413.8 tonnes held abroad. Amid geopolitical volatility and financial unpredictability, central banks worldwide are fortifying their reserves, reaffirming gold’s status as the ultimate safe haven.
The result? A metal whose value, both in economic and symbolic terms, remains unshakeable. Gold’s legacy in India is not just enduring, it seems poised to turn overwhelming.
