On Friday, the Confederation of All India Traders (CAIT) said that the coronavirus pandemic has been deterrent for gold and silver jewellery, but the sharp rise in the price of the precious metals compared to last year is expected to attract investors this Diwali.
"Corona deprivation, there has been a decrease in the purchasing power of the people in the country but in view of the rising price of gold and silver, huge investment is expected in the markets this year as always," CAIT President B C Bhartia said in a statement.
Gold and silver will be the first choice of investors, for which bullion markets have also made preparations and varietals are available for customers in every range, he added.
Gold and silver prices in India have climbed from Rs 38,923 per 10 grams and Rs 46,491 per kg in Dhanteras 2019 to over Rs 50,520 per 10 grams and to Rs 63,044 per kg, respectively.
Dhanteras and Deepawali have special importance, in which most Indians invests in precious metals.
Pankaj Arora, chairman of the gold and jewellery committee of the Confederation of All India Traders (CAIT), said consumption of gold jewellery has decreased compared to last year due to the COVID-19 disruptions. It led to consumption of gold jewellery in the country to 52.8 tonne in the second quarter of this year from 101.6 tonnes in the same period of 2019, a dip of 48 percent, he added.
"This year, it is expected that people will invest mostly in gold and silver, which is considered safe," he said.