Pre-Diwali Dhanteras purchasing of precious metals such as gold and silver in India, the country which has been tagged as the world’s largest gold consumer, initiated on favourable note on Friday (10th November 2023). Strong demand was seen because of the recovery of consumer demand as gold prices softened. Gold sales on Dhanteras touched record levels as sentiments improved due favourable economic factors. Gold prices saw a decline of INR800-INR1,500 per 10 gram (24 carat). This fall was seen from the peak of INR63,000-level on 28th October. As a result of this, strong buying was seen on Dhanteras, which has been considered as most auspicious day in Hindu calendar for purchasing items that range from precious metals to utensils. Traders continue to expect gold sales to exceed the previous year’s levels.
On Thursday, gold prices fell by INR 400 to INR 60,950 per 10 grams in the NCR. As gold sales on Dhanteras peaked, the yellow metal’s prices ruled at INR 50,139 per ten grams, which excludes taxes. In normal years, ~20-30 tonnes of gold were sold on Dhanteras. Traders expect footfalls should pick up in the upcoming months as gold prices continue to trade at lower levels in comparison to the record levels which were seen in the previous few months.
Experts believe that gold prices continue to perform in the favour of the business and the traders are optimistic about the good sales for the upcoming months. These expectations stem from the positive response from consumers and higher footfalls on the daily basis. Given the recent fall in the diamond prices, the younger generation continues to purchase light-weight jewellery. However, some are even purchasing gold and silver coins.
Given the strong gold sales on Dhanteras, the momentum was seen in automobile industry and in consumer industries too. On Friday, manufacturers of automobiles and consumer goods companies released strong sales figures during Dhanteras. Experts believe that this trend is expected to continue for the next few days. Hyundai Motor India Ltd (HMIL), which has been categorised as India’s second-leading automaker, saw a remarkable 2x growth in deliveries in comparison to the prior year.
Leading companies in the electronics space, such as LG Electronics, Panasonic, and Godrej Appliances, saw healthy pre-Diwali Dhanteras sales growth in the range of 15% – 20%.