Dhanteras 2021: Gold shines down, sales pick up in India amid sluggish demand

New Delhi: Dhanteras shopping ahead of Diwali in India, the world’s leading gold consumer, started on a positive Tuesday as pandemic norms eased along with improving consumer demand.

The softening of gold prices has also triggered buying on Dhanteras, which is considered the most auspicious day in the Hindu calendar to buy rain wares ranging from precious metals to utensils, with traders selling gold to pre-pandemic levels. expected to touch.

Traders also said that the rush of people is expected to increase after 11.30 am (Muhurta time) and will continue till Wednesday morning.

On Tuesday, gold prices in the national capital were in the range of Rs 46,000-47,000 per 10 grams (excluding taxes), from a record high of over Rs 57,000 in August this year. But gold rates are still 17.5 per cent higher than the Rs 39,240 per 10 grams that was prevalent on the day of Dhanteras 2020.

Generally, an estimated 100-150 tonnes of gold is sold on the day of Dhanteras (during the years before the pandemic).

Speaking to PTI, World Gold Council (WGC) regional CEO (India) Somasundaram PR said, “Slowdown in demand, coupled with softer prices and a good monsoon, easing of lockdown across regions, contributes to a strong jump in demand. It’s good.”

“We expect this quarter to be one of the best in recent years, which is the benchmark for the pre-COVID season,” he added.

Ashish Pethe, Chairman, All India Gem & Jewelery Domestic Council said that this year consumer demand is very positive, “In terms of value, we expect sales to be 10-15 per cent higher than last year and volume wise. It is likely to be at the level of 2019.”

He said that better business is expected across the country, especially in the North, East and West regions.

Balram Garg, Managing Director, Delhi-based PC Jeweler said, “Demand during this Dhanteras is much better than last year. Our showrooms have a good number of customers so far. Consumers are buying light weight jewellery.”

Echoing similar views, Bachraj Bamlwa, co-founder of Kolkata-based Nemichand Bamlwa and Sons, said this time the demand has resumed as shops have opened amid easing of pandemic norms.

“Due to the last Dhanteras pandemic, sales had shifted to online platforms. But this time, consumers are returning to shop at physical stores,” he said.

“Gold sales are expected to touch pre-pandemic year levels,” said Bamalwa, former president of All India Gems and Jewelery Trade Federation.

He said that the sale of silver may not be much due to the high price of Rs 63,000-64,000 per kg.

Saurabh Gadgil, Chairman and Managing Director, PNG Jewelers said, “The shops are open since 9.30 am and there is positive momentum. We have seen bookings for gold and silver items from last two days, which will be picked up today.”

He said that this Dhanteras looks very positive as sales are expected to almost double as compared to 2019.

Suvankar Sen, CEO, Senco Gold & Diamonds said that consumers are buying pre-booked jewellery, especially neck pieces and wedding jewellery. There is also a demand for light weight jewelery from floating consumers.

“We expect business to grow by 10-15 per cent from 2019 onwards,” he said.

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