Bullion over bling: Dhanteras buyers rush for coins, bars as gold soars

Rising gold prices may have dented fresh jewellery sales, but customers are still thronging jewellery stores despite record highs in gold and silver prices, looking to buy coins and bars ahead of Dhanteras.

 

In Mumbai’s bustling jewellery district, stores are packed, with many customers coming in to buy or book gold and silver coins and bars as both festival and investment purchases. The same trend is visible in Delhi’s Dariba Kalan market. But while footfall remains strong, the quantities being purchased have clearly shrunk. 

In Mumbai’s Zaveri Bazaar, one Manisha Gajani booked 5 grams of gold to collect on Dhanteras. “Last year I purchased a 10-gram coin, but this year I could only buy 5 grams as the price of gold has skyrocketed since last year,” she said. 

Kasha Siddique, 28, a working professional, was among those turning to silver. “I intend to hold on to the silver bars as an investment for at least two years, as the price is constantly moving up,” she said. 

With silver in short supply, some Mumbai stores have stopped taking bookings for later delivery. While a few jewellers say the supply situation has eased, others report that they are only selling to customers making spot purchases. 

At Umedlal Tilokchand Zaveri, a century-old jewellery store, owner Kumar Jain said demand for coins and bars this Dhanteras is strong. “Customers are coming in to buy jewellery, but most of them are selling old gold and opting for new designs ahead of the wedding season,” he said, adding that demand for gold and silver is up by around 20 per cent and expected to rise further on Dhanteras.

 

At SSK Jewellers, which specialises in silver, owner Vinod Jain echoed that sentiment: demand remains steady, but customers are buying smaller quantities. Shripal Surana, of Pukhraj Jawanmal Surana Jewellers, said momentum has picked up sharply in the past two weeks, with demand for silver coins and bars up by 30-40 per cent as prices surge.

 

At UT Zaveri & Sons, owner Jitu Jain said demand for coins and bars is three times higher than last year’s Dhanteras. “We have increased the quantity of half-gram coins, as prices are high but customers still want to buy gold as an investment,” he said.

 

In Delhi, bullion buying trends mirror those in Mumbai. According to jewellers, silver prices have surged to ₹1.76 lakh per kg for 999 silver, while gold has touched ₹1.34 lakh per 10 grams for 24-karat purity.

 

“Most people are here to buy bullion for investment purposes. It’s a customary practice and people will continue to buy gold and silver,” said Tarun Gupta, president of the Dariba Jewellers Association. “While jewellery sales have been hit, bullion sales have almost doubled this year. People still have the capacity to buy.”

 

Gupta, who also owns Ratan Chand Jwala Nath Jewellers, said jewellery sales are down by nearly 40 per cent. “There is a cultural significance to buying gold during the festivities, and that will continue. Many are buying coins for gifting purposes and raw gold for investment, as prices are expected to rise further,” he added.

 

The frenzy, he said, is expected to peak on Saturday, when Dhanteras is celebrated. “We don’t see demand slowing for bullion.”

 

At Radhey Kishan Gopal Kishan Jewellers, established in 1911, the story is similar. “We are, in fact, facing a shortage of silver coins as demand has risen for investment purposes,” said Gaurav Gupta, owner of the store and treasurer of the market association.

 

“Gold prices are skyrocketing, and in such a scenario more people are turning to silver. Prices of silver too are climbing, making it an even more attractive investment,” he said.

 

Across markets, the picture is consistent. “We are seeing people either come in with old gold jewellery for exchange or buy bullion and coins to keep as investment for later,” said a prominent jeweller in Delhi’s Preet Vihar, adding that diamond jewellery in lower caratage is also beginning to gain traction as the wedding season approaches.