Gold Demand Remains Moderate During Dhanteras Amidst Shift to Diamonds

Strategic Insights -

The demand for gold during Dhanteras, the gold buying festival, remained moderate this year, with gold retailers citing a slowdown in the economy and a poor monsoon as reasons for the subdued demand. As a result, there has been a shift in demand from gold to diamonds, with most retailers reporting higher sales of diamond jewelry. The festival, which is considered auspicious for buying gold or silver as a symbolic gesture, saw a slight pick-up in demand due to discounts and festive offers, but it was still lower compared to previous years.

Key Takeaways:

  • The demand for gold during Dhanteras remained moderate, with a slight improvement compared to last year, according to gold retailers.
  • Shashank Goyal, Founder, SLG Jewellers, attributed the moderate demand to discounts and festive offers, rather than the festival itself.
  • Riddhi Siddhi Bullions reported that demand for gold was better than in the rest of the year but less compared to previous years.
  • Demand for diamonds saw a significant increase, with most retailers reporting higher sales of diamond jewelry.
  • Hardik Kapoor, Founder, Jewelsify.com, attributed the increase in demand for diamond jewelry to a shift in consumer preferences, demographics, and rising income levels.
  • Archana Parasrampuria, Proprietor, Amarkosh Jewels, said that sales in diamond jewelry were better than last year but not a long-term trend.
  • The demand for gold may improve post-Diwali, with Goyal expecting a fair improvement in sales in the post-Diwali wedding season.

Statistics:

  • Moderate demand for gold during Dhanteras compared to previous years.
  • Demand for gold was better than in the rest of the year but less compared to previous years (Riddhi Siddhi Bullions).
  • Sales of diamond jewelry were greater than gold this year.
  • Demand for gold ranged from Rs 26,000 to Rs 27,000 for the majority of the year (Samir Shah, Vice President, Riddhi Siddhi Bullion).
  • Demand for gold usually starts a month ahead of Diwali, but this year it was only up in the last one week (Samir Shah).

Sources:

  • Shashank Goyal, Founder, SLG Jewellers
  • Riddhi Siddhi Bullions
  • Archana Parasrampuria, Proprietor, Amarkosh Jewels
  • Hardik Kapoor, Founder, Jewelsify.com
  • Samir Shah, Vice President, Riddhi Siddhi Bullion