New Delhi: Indians bought an estimated Rs 60,000 crore worth of gold on Dhanteras, marking a 15-20 per cent increase in value compared with last year. However, the quantity of gold sold remained largely unchanged, indicating that higher prices, rather than a surge in demand, drove the increase in festive sales.
"The total gold business across India on the occasion of Dhanteras is estimated to be approximately Rs 60,000 crore," Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council (AIGJDC), told PTI. He described the figure as a preliminary assessment and said gold sales volumes were likely to remain broadly flat year on year, as prices continued to be higher than last year's levels.
Gold prices in Delhi stood at Rs 1,46,300 per 10 grams for 24-carat gold, including taxes, on Friday. This was around 20 per cent below the record high of Rs 1,83,000 recorded on January 29, but remained above the Rs 1,32,400 level seen during last year's Dhanteras.
Silver prices also declined from their January peak, falling 52.4 per cent from Rs 4,04,500 per kg to Rs 1,92,500. However, prices remained above last year's Dhanteras level of Rs 1,70,000. The council expects silver sales to increase 30 per cent in value terms and 10 per cent in volume.
With gold prices remaining elevated, buyers increasingly opted for lightweight jewellery, 14- and 18-carat pieces, small coins and exchanges of old gold instead of purchasing larger quantities of new metal.
Kalyan Jewellers said the price of 22-carat gold had eased to Rs 13,150 per gram from Rs 13,385 the previous day, attracting first-time buyers, particularly in tier-2 and tier-3 cities.
Jewellery retailers also reported an increase in sales. Senco Gold recorded a 25 per cent rise in sales value, while PNG Jewellers reported growth of 25-30 per cent. PC Jewellers reported a 30-35 per cent increase in sales volume.
The Confederation of All India Traders estimated total Dhanteras business at more than Rs 1 lakh crore. Meanwhile, the All India Jewellers and Goldsmith Federation estimated gold and silver sales at over Rs 66,000 crore across the preceding days, with bullion markets in Delhi alone recording business worth more than Rs 10,000 crore.
The increase in festive spending was also reflected in the automobile sector. Maruti Suzuki delivered more than 30,000 cars on Dhanteras and reported a 17 per cent rise in retail sales between Ganesh Chaturthi and Dhanteras, taking deliveries to four lakh units.
Consumer electronics, however, witnessed a different trend. Sales volumes of smartphones, televisions and laptops declined by up to 15 per cent, even as prices increased by as much as 40 per cent.
Overall festive-season sales since Navratri have increased by around 20 per cent in value terms and 5-8 per cent in volume, according to industry executives. The Federation of Automobile Dealers Associations expects vehicle sales during the Diwali period to remain broadly flat compared with the previous year's high base.
With inputs from PTI and media reports.