31 October, 2024; In a testament to the enduring allure of gold in India, this year’s Dhanteras celebration witnessed an impressive surge in gold sales. Approximately 20 to 22 tonnes of gold were purchased, marking a significant spike in consumer demand during the festive season. This translates to a staggering revenue of around ₹16,000 crore (approximately $1.9 billion), underscoring the pivotal role that gold continues to play in Indian traditions and investment.
Festive Season Fuels Gold Demand
Dhanteras, celebrated just before Diwali, is traditionally considered an auspicious day to purchase precious metals and new items as it’s believed to bring prosperity. As is customary, people flock to jewelry stores to buy gold ornaments, coins, and bars. This year, the heightened interest in gold was not only fueled by the festive spirit but also by factors such as increased consumer confidence and economic optimism. Industry experts observed that the pent-up demand from the previous few years, along with rising income levels, played a role in boosting gold sales across the country.
Rural Demand Contributes Significantly
Another key factor behind the robust gold sales this Dhanteras was the substantial contribution from rural buyers. India’s rural population has historically been a strong supporter of gold investments, viewing it as a secure and liquid asset. This year, a favorable monsoon season and enhanced rural incomes provided an additional boost to their purchasing power, making it possible for more rural households to invest in gold on Dhanteras.
Shift in Consumer Trends
While traditional gold jewelry remains a top choice, this year saw an increase in the sale of smaller, lighter pieces and gold coins. Many customers opted for these items to diversify their investment portfolios. Experts also noted a slight shift toward digitized gold purchases, allowing consumers to buy and hold gold without physical delivery. This trend appeals to younger buyers and urban consumers who value convenience and safety, adding a new dimension to India’s gold-buying culture.
Industry Optimism Amid Global Economic Shifts
The Dhanteras gold sales surge comes at a time when the global economy is experiencing uncertainty, and gold prices have fluctuated over the past year. Despite these factors, gold’s historical stability as a ‘safe haven’ investment has contributed to its sustained popularity. With global inflation concerns and geopolitical tensions, many investors see gold as a hedge against economic volatility, further enhancing demand in India.
Record Sales, Future Prospects
Jewelry associations and industry stakeholders have expressed optimism following this record Dhanteras. The thriving demand reflects gold’s deep cultural resonance and continued role as a safe investment in Indian households. As the nation enters the Diwali season, jewelers and retailers are hopeful that this positive trend will carry over into the remainder of the festive period, enhancing gold’s performance in the Indian economy.
