The impact of the huge fall in gold prices was clearly visible on Dhanteras and Diwali purchases this time. The price of gold fell from a record Rs 1.80 lakh per 10 grams to around Rs 1.42 lakh. That means the prices decreased by about Rs 38 thousand (21%). Due to availability of cheap gold, the purchase of gold during festivals across the country increased by 30% compared to last year.
During this period, about 52 tonnes of gold was purchased in the country, the total value of which was approximately Rs 72 thousand crores. At the same time, purchasing of silver also increased and its sales increased by 10% to around 300 tonnes. The total turnover of silver was approximately Rs 5,400 crore.
Gold sales had fallen by 50% by September
In this financial year till September, the volume of gold sales had decreased by about 50% compared to last year. The main reasons for this were the record prices of gold and increase in import duty. Apart from this, Prime Minister Narendra Modi's appeal to people not to buy gold was also considered to be the reason for the decline in demand.
When prices fell, customers returned to the market.
According to Surendra Mehta, national secretary of India Bullion and Jewelers Association (IBJA), many customers had postponed the purchase of gold due to high prices. Now after the prices have come down, these customers have returned to the market again. He told that the process of purchasing gold is still going on. Along with this, the beginning of the wedding season also played an important role in increasing the demand for jewellery.
250% jump in diamond sales on Dhanteras
In the festive season, the demand for not only gold and silver but also diamonds increased rapidly. According to Bengaluru-based jewelery brand C Krishnaiah Chetty Jewellers, this time the sales of natural diamonds on Dhanteras were 250% more than last year. At the same time, an increase of 47% was recorded in sales during Diwali.
According to the company, sales of natural diamonds were the second highest in the last 8 years. Apart from this, the market of lab-grown diamonds is also expanding rapidly. Overall, the fall in gold prices, wedding season and festival demand have given great relief to the jewelery market this time.