Dhanteras gold rush: Brisk sales in India fueled by softening prices

Gold and silver sales surged in India on the pre-Diwali Dhanteras festival, marking a positive start to the festive buying season in the world's largest gold consumer. The recovery of consumer demand, coupled with a softening of gold prices by Rs 800-1,500 per 10 grams (24 carats) from the peak on October 28, contributed to the brisk buying.

Considered the most auspicious day in the Hindu calendar for purchasing precious metals, utensils, and other items, Dhanteras witnessed gold prices dropping to Rs 60,950 per 10 grams in the national capital on Thursday. Traders are optimistic that gold sales will surpass last year's levels.

The best muhurat (auspicious time) for buying silver and gold on Dhanteras started at 12:35 pm on Friday and will continue until 1:57 pm on November 11. In a normal year, about 20-30 tonnes of gold are sold on Dhanteras.

Positive outlook for sales 

Traders anticipate increased footfall as the day progresses, with the softening gold prices favouring business. The All India Gem and Jewellery Domestic Council (GJC) Director, Dinesh Jain, expressed positivity about sales, noting a gradual increase in footfalls and positive responses from consumers.

The fall in diamond prices has led the younger generation to purchase lightweight jewellery, while some are investing in gold and silver coins. Manish Jain, former chairman of All India Gems & Jewellery Trade Federation, highlighted the softening rates and increased consumer demand, with consumers buying gold and silver coins and silver utensils for puja purposes.

Gold has provided an impressive return of almost 20 per cent since Dhanteras last year, outperforming the returns of the Nifty 50, according to Deveya Gaglani, Research Analyst (Commodities) at Axis Securities. The festive season is expected to witness robust sales, reflecting the traditional significance of gold during Diwali celebrations.

(With PTI inputs)