Diwali week sees 5.7% growth in gold sales: World Gold Council

Given their strong cultural affinity with gold, Indian consumers’ preference for the yellow metal surged during the Diwali week, the most auspicious occasion of the year to own the precious metal, despite a spurt in prices.

According to data from the World Gold Council (WGC), gold sales during the week rose 5.7 per cent in volume terms to 56 tonnes, as against 53.5 tonnes in the same period of the previous year. In value terms, sales surged a staggering 39.2 per cent to Rs 8,904 crore as compared with Rs 6,396.55 crore in the corresponding period last year.

The volume spurt was despite a surge in gold prices to Rs 15,800 per 10 gm on October 16, a day before Diwali, as compared to Rs 12,030 per 10 gm on October 25, 2008, a day before the previous Diwali.

WGC clarified that the figures were based on a study of all retailers who participated in ‘The Great Indian Gold Rush’, a month-long gold buying opportunity created by the council in association with over 100 retailers across the country.

Robust demand was witnessed across the country, particularly in the North, said Ajay Mitra, managing director - Indian sub-continent, WGC. This shopping festival has been instrumental in the growth of gold sales this year as retailers have received an overwhelming response from the consumers, he added.

In October, gold sales by Reliance Money, an ADA Group company, surged 40 per cent to 120 kg with huge demand witnessed in coins and bars from retail investors.

The west, north, south and east sold 19.6 tonnes, 16.8 tonnes, 11.2 tonnes and 8.4 tonnes, worth Rs 3,116 crore, Rs 2,671 crore, Rs 1,781 crore and Rs 1,336 crore, respectively.

Based on the existing consumer reaction to gold, we are confident the current trend will continue for the rest of the year, Mitra added.