If you're planning to purchase gold or silver during this festive season, there is very encouraging news for you. Over the past month, gold prices have recorded a decline of more than seven percent. This moderation in prices has injected fresh life into a sluggish jewelry market. Customers who were repeatedly postponing their purchases due to surging prices are now returning to local shops and showrooms just ahead of the auspicious festival of Dhanteras. Market experts note that retail and wholesale gold buying has gained significant momentum since last week. With Dhanteras scheduled for November 6, this strong market momentum is expected to persist continuously until the festival.
Gold becomes significantly cheaper from its all time high
On Monday, the price of 10 grams of gold in Mumbai's prestigious bullion market dropped to one lakh thirty-seven thousand rupees. Exactly a month ago, this price stood at one lakh forty-eight thousand rupees per 10 grams. Comparing this to the highest and record level of the year, gold has become considerably cheaper. On January 29, gold had registered its all-time high record of one lakh eighty thousand rupees per 10 grams, compared to which current prices are much lower. Surendra Mehta, National Secretary of the India Bullion and Jewelry Association, has estimated that total gold sales this Dhanteras could increase by 10 to 12 percent compared to last year. Dhanteras is traditionally considered the most auspicious day for making valuable and expensive purchases in Hindu culture.
Strong surge in advance bookings for the upcoming wedding season
Amid these positive market shifts, the drop in prices has not only boosted festive shopping but has also prompted people to make advance bookings and place orders for the upcoming wedding season. When gold prices were soaring rapidly and breaking records, several families had put their planned purchases on hold. Now, that pent-up demand is clearly visible in the open market once again. In addition to traditional and modern gold jewelry, retail shops and large showrooms have also witnessed a surge in demand for silver coins and utensils, while ramesh Kalyanramen, Executive Director of major jewelry brand Kalyan Jewelers, informed media that the moderation in gold and silver prices right before Dhanteras brings a huge relief to customers who had been eagerly waiting for the right rates. According to him, showrooms across the country witnessed massive customer crowds and an unprecedented rise in footfall over the weekend.
High demand for 18 karat jewelry to manage household budgets
This seasonal drop in prices has greatly helped ordinary customers balance and manage their household budgets. Vipul Shah, Executive Director of the renowned brand Aura Jewels, stated that falling prices now allow customers to choose slightly heavier jewelry or better designs within their previously fixed budgets, while however, compared to historical and past levels, gold prices still remain quite high. Because of this, ordinary people are focusing on lightweight jewelry, lower karat gold, or smaller budget purchases to ensure their monthly or festive budgets aren't severely disrupted, while according to Ramesh Kalyanramen, the availability of special collections in 18-karat jewelry allows customers to easily buy traditional and modern designs even at lower and more affordable price points.
Customer focus shifting from metal weight to intricate designs
A major and positive shift in customer preferences and priorities is also clearly visible during this festive season. Gurukirti Gurunathan, Co-founder of Tata Group's esteemed company CaratLane, mentioned that this time customers are prioritizing attractive and exquisite jewelry designs over mere metal weight or pricing. According to him, lightweight daily-wear diamond pieces, traditional Jadau jewelry, and solitaire diamonds are witnessing a very fast-growing demand in the Indian market. Overall, the decline in gold and silver prices has brought joy to customers nationwide, encouraging them to shop freely, while meanwhile, jewelers and traders across the country are fully optimistic about achieving record-breaking earnings this coming Dhanteras, providing renewed strength to the retail market.