Dhanteras 2023: Appetite for gold products adds glitter this season

Overall sales have seen an increase over last year, but that was in value terms and not in quantity, because of prices being 20 per cent higher than last Diwali

Even after two roaring Diwali seasons of gold demand, Indian consumers still seem to have an appetite for gold products. The feedback received from many quarters suggests sales in value terms are expected to be 15 per cent higher than those during Dhanteras last time.
 

Because of some moderation in gold prices in the past two-three days, consumers came to stores late afternoon on Friday to buy gold.

In terms of tonnage, sales are estimated to be more or less at last year’s levels. In value, sales could be higher because gold prices are around 20 per cent higher this time than they were last Diwali.
 

Dhanteras gold muhurt was also after 3 pm, and Friday being a weekday, buying did not happen during daytime. According to the Hindu calendar, during Dhanteras, a festival for worshiping the deity of wealth, people add gold to their portfolio and hence this is among the most important gold events for jewellers.  

Somasundaram P R, regional chief executive officer (CEO), India, World Gold Council, said “feedback from the industry suggests that gold is seeing a strong interest though consumers remain price-conscious. The economic scenario is also supportive of gold buying.”

In the last fortnight, prices jumped sharply. In Mumbai’s Zaveri Bazar, since the October 6 low, the standard gold price has increased 6.5 per cent.

Ajoy Chawla, CEO, jewellery division, Titan Company, said: “Over the past three weeks of this festival season, we’ve observed a significant upswing in customer sentiment. Notably, our new collections, including Dharohar, a showcase of Indian craftsmanship, Rivaah X Tarun Tahiliani’s exquisite bridal jewellery, String It, our chic lightweight neckwear, etc have been receiving remarkable traction across all categories. These offers are designed to delight every customer during Diwali.

The upcoming Dhanteras festivities, on Friday and Saturday, serve as additional positive factors that instil confidence in us. We are optimistic about achieving new highs in our sales and performance this festive season.”

Ramesh Kalyanaraman, executive director, Kalyan Jewellers, said: “We are witnessing an uptick across geographies in footfall and revenue. A consistent consumer interest has been recorded, reflecting a resilient demand with a positive sales outlook. This year, the gold-buying muhurat spans over a period of two days, starting from 2 pm on Friday to 5 pm on Saturday. Unexpected rain in certain markets has muted demand, but we are hopeful that the trend will continue well into the weekend.”

Market sources said in Kerala, a predominantly gold-buying market, silver demand was high for the first time because the investors expected silver prices, rather than those of gold, to rise.

Some buying is expected to continue on Saturday. However, according to Debajit Saha, lead analyst, precious metals, LSEG, “sales of gold coins on online platforms have been very good and some refineries supplying gold to them have said their stocks exhausted quickly”.

Saha said “overall sales will be better in value terms overall”.

However, the online market is not as big as the offline one.