Dhanteras 2023 Sees Silver Sales Surge by 40% Despite High Gold Prices

During Dhanteras, a significant rise in silver demand was observed, surpassing gold despite high prices. Silver coin sales increased by 35-40% compared to last year, with the overall value more than doubling. Meanwhile, the jewellery sector anticipates a 15% drop in gold volume. Dhanteras, a key day for purchasing precious metals in the Hindu calendar, is celebrated over two days until Sunday afternoon.

Representative image

Jewellery stores extended their hours, staying open until midnight and on Sunday. Gold prices in Delhi rose by 63% to Rs 1,32,000 per 10 grams of 24-carat gold, including taxes. This is an increase from Rs 81,400 on October 29, 2024. Silver prices also climbed by 40%, yet demand remained strong. In major markets, both gold and silver prices experienced slight corrections during Dhanteras.

Gold and Silver Price Adjustments

In Mumbai, the price of 24-carat gold decreased to Rs 1,28,000 per 10 grams on Saturday from Rs 1,30,000 on Friday. Silver prices fell to Rs 1,70,000 per kg from Rs 1,77,000. Similarly, in Delhi, gold dropped to Rs 1,32,000 per 10 grams from Rs 1,34,800 and silver to Rs 1,70,000 per kg from Rs 1,77,000. The overnight Rs 2,000 reduction in gold prices further encouraged purchases.

Post-lunch buying momentum increased as consumers shifted towards coins and bullion in denominations ranging from 1 to 50 grams for investment purposes and early weddings. According to Rajesh Rokde of the All India Gem and Jewellery Domestic Council (GJC), Dhanteras in 2025 saw a decrease of 10-15% in overall volume compared to last year. However, the value has risen sharply.

Consumer Trends and Strategic Purchases

Rokde expects festive sales to exceed Rs 50,000 crore despite high prices. Sentiment remains positive due to strategic purchases. Silver coins and puja items saw a year-on-year surge of 40%, highlighting silver's appeal as a smart investment choice. GJC Vice Chairman Avinash Gupta noted consumer maturity with average transaction values rising by 20-25% despite volume dips due to high prices.

The most notable increase was a 35-40% surge in silver coin sales in Tier 2 and Tier 3 cities. Buyers preferred budget-friendly investments and ceremonial gifting options. Gupta also observed a rise in self-purchase trends by about 15%, with younger consumers opting for lightweight and responsibly sourced silver jewellery.

Impact of Digital Campaigns

Digital campaigns expanded reach significantly this year. Jewellers in smaller towns reported stronger growth compared to metropolitan areas. This year's celebration isn't just about tradition; it's about thoughtful and value-driven choices. Suvankar Sen of Senco Gold and Diamonds mentioned that high prices boosted demand for lightweight gold jewellery.

However, silver bars and coins were the standout performers. Pre-bookings now account for 15% of business compared to negligible figures last year. These pre-bookings were primarily led by silver purchases. Gold sales volume is expected to decline by 12% year-on-year due to a price increase of around 40%. However, the value is anticipated to rise by 20-25%.

Market Dynamics and Consumer Preferences

Saurabh Gadgil of PNG Jewellers reported robust demand across bullion as well as gold, diamond, and silver jewellery categories. Bullion items like coins and bars are performing exceptionally well despite supply shortages preventing silver pre-bookings. A buoyant Dhanteras is expected with a value growth of around 15-20% over last year.

Sachin Jain from the World Gold Council India highlighted strong sentiment for gold across various forms such as jewellery, coins, bars, ETFs, and digital gold. Customers made both token and substantial purchases reinforcing gold's role in prosperity. Record business is anticipated throughout the festive and wedding seasons.

Silver's Parallel Strength

Colin Shah of Kama Jewelry noted that the festive season will witness a surge in sales of jewellery ranging from nine to eighteen carats with an expected overall sales growth of about 18-20%. The Confederation of All India Traders (CAIT) reported that gold and silver sales alone accounted for Rs 60,000 crore marking a significant increase of approximately 25% from last year.

India remains one of the world's largest consumers of gold after China while also being one of the top importers globally.

With inputs from PTI