Dhanteras 2024: Gold sales fall short of silver and diamond sales due to 30% hike in price in a year

This Dhanteras brought an unexpected shift in India’s jewelry market, as gold—traditionally the star of festive buying—experienced a decline in demand. While silver and diamonds surged in popularity, high gold prices encouraged consumers to explore other precious metals and even lab-grown gems, reshaping buying trends. Here’s a closer look at what drove this transformation and what it means for the future of festive shopping.

Credits: The Economic Times

Gold Sales Decline as Prices Soar

Gold, a longstanding favorite for investment and gifting on Dhanteras, witnessed a drop in demand as prices hit record highs. With rates increasing by nearly 30% since last Diwali, 10 grams of gold traded at ₹78,430 on Dhanteras, up 0.6% from the previous day. Surendra Mehta, National Secretary of the Indian Bullion and Jewellers Association (IBJA), noted that gold volume fell by about 15% this Dhanteras compared to last year.

Many consumers now consider gold a less practical choice due to its elevated price point. The high rates have caused buyers to hold back on large gold purchases, opting instead for other metals like silver or exploring options in the diamond market. With inflation concerns and economic pressures, many consumers view gold purchases as less flexible investments compared to other precious assets.

Credits: Hindustan Times

Silver Sales Sparkle with 33% Growth

While gold struggled, silver’s star shone brighter than ever. Silver sales soared by 33% this Dhanteras, largely driven by its perceived affordability and practicality as an investment. Unlike gold, which has seen sharp price increases, silver has remained relatively stable, making it an attractive option for middle-income buyers looking to make precious metal purchases without breaking the bank.

For buyers looking to celebrate the festival with metal purchases but finding gold too costly, silver has become the go-to alternative. Silver coins, jewelry, and artifacts are popular choices, balancing tradition and investment potential in a more affordable package. With silver’s rising popularity this Dhanteras, it seems this metal could be emerging as a viable long-term investment choice in India.

Growing Interest in Digital Investments with Digi Gold

The trend toward digital investment in precious metals has grown, especially with platforms like Digi Gold offering flexibility in both gold and silver purchases. Dhanteras buyers not only looked to physical silver but also considered digital silver as an option, particularly through systematic investment plans (SIPs). These plans make it easier to invest in small, manageable amounts over time.

Chirag Thallar, director at Amrapali Gujarat, which runs one of the few platforms offering digital silver, reported a 40% increase in digital silver sales this year compared to last. The convenience of buying precious metals digitally is attractive, especially for tech-savvy young consumers who prefer the flexibility of digital assets over physical ones. For them, digital platforms offer a convenient, modern way to invest in silver and gold without the hassle of storing physical items.

Diamonds Sparkle with Younger Buyers

This Dhanteras, diamonds emerged as a crowd favorite, particularly among younger consumers. Lab-grown diamonds, which are more affordable than natural ones, have gained attention for their eco-friendliness and similar appearance to mined diamonds. With their lower price points, lab-grown diamonds allow buyers to enjoy the allure of diamond jewelry without the hefty cost, making them accessible for festive purchases.

Titan’s Tanishq, Zoya, and Kalyan Jewellers reported high engagement from consumers exploring new diamond designs. These brands launched thousands of designs for the festive season, adding a modern twist to traditional jewelry. Alongside lab-grown diamonds, natural diamonds of lower carats, such as 14 and 18, also saw growing interest. Many see diamonds as long-lasting assets, whether as part of jewelry collections or as stand-alone investments.

The Changing Face of Dhanteras: Modern Trends Meet Tradition

The shift away from gold this Dhanteras reflects broader changes in consumer behavior, as buyers seek diverse options that align with their budgets and values. Silver and diamonds offer alternatives that are both appealing and practical, with digital platforms further enhancing accessibility.