Dhanteras 2024: India's Gold Sales See Dip Amid Rising Prices, Silver Shines With 30% Sales Surge

India’s gold market experienced a dip in demand this Dhanteras, with sales reaching approximately 35 tonnes, down from last year's 42 tonnes, according to the India Bullion and Jewellers Association (IBJA). 
The decline in volume is largely attributed to rising gold prices, which have led consumers to explore alternative options. However, the silver market saw a substantial 30 per cent surge in sales over last year, underscoring a shift in consumer buying behaviour.

Gold Demand Remains Resilient Despite Higher Prices
Ramesh Kalyanaraman, Executive Director at Kalyan Jewellers, noted a steady flow of customers, revealing a mix of traditional and modern preferences. "Despite higher gold prices, demand has remained strong. Conservative buyers favoured Shagun coins, while younger shoppers leaned toward lightweight or 18k jewellery," he shared. With the wedding season approaching, interest in elaborate pieces has also been rising. "Festivals like Navratri, Karwa Chauth, and Pushya Nakshatra contributed to an uptick in demand, and we observed strong foot traffic, especially during the auspicious Mahurat hours," Kalyanaraman added, expecting the momentum to carry into the extended Mahurat until the afternoon of October 30.

According MP Ahammed, Chairman, Malabar Group commented, "This festive period has been a great one for us at Malabar Gold & Diamonds, as we recorded an impressive turnover of Rs 3,484 crore this Diwali, marking a notable 30 per cent rise over last year's Rs 2,680 crore. This growth reflects the resurgence of demand in the Indian jewellery market, fueled by robust consumer sentiment and a two-day Dhanteras mahurat that allowed a larger window for buyers. We are pleased to see such enthusiastic customer participation and remain committed to offering them both quality and value.”

Shifts in Consumer Trends Amid Market Fluctuations
Suvankar Sen, MD & CEO of Senco Gold & Diamonds, echoed these sentiments, acknowledging a decline in volume by around 12-15 per cent due to price hikes. However, he anticipates value growth of 10-12 per cent as higher prices drive up ticket sizes. “This season, we’ve seen a shift toward lightweight and diamond jewellery, with younger consumers opting for versatile, modern designs. Men’s jewellery has also gained traction, as men increasingly view gold as both an adornment and an investment,” Sen highlighted. Wedding-related purchases are expected to stay strong, making Dhanteras a nationwide celebration of prosperity.

A Steady Footfall and Festive Spirit Drive Gold Buying
At Aisshpra Gems and Jewels, Directors Vaibhav Saraf and Saumitra Saraf reported a steady customer influx. "Despite the price surge, customers invested generously in gold, with traditional buyers opting for Shagun coins and younger buyers preferring lightweight, trendy designs," shared Saraf. The festive lineup of Navratri, Karwa Chauth, and Pushya Nakshatra has been pivotal in sustaining demand. The extended Muhurat period has further fueled excitement among shoppers, with Aisshpra anticipating continued momentum until October 30th.

Dhanteras buying in 2024 reflects the evolving preferences of Indian consumers, balancing traditional values with modern tastes. As the wedding season looms, the gold market is expected to retain its appeal, albeit with more diverse product choices and strategic purchases shaped by current economic conditions.