Gold regains glitter, best Diwali sales in 5 years in Gujarat

AHMEDABAD: It has been a real gold rush this Diwali with consumers making a beeline to make muhurat purchases on Dhanteras and Pushya Nakshatra. Yellow metal worth Rs 372 crore or 750 kilogram was sold in Gujarat on these two auspicious occasions this year. For gold, this has been the best Diwali in last five years, said jewellers.
Around 300 kg gold was traded across the state on Dhanteras, while the sales were about 450 kg on Pushya Nakshatra, which fell on October 28, shows estimates by India Bullion and Jewellers Association (IBJA).
“Muhurat gold sales increased 150% against an estimated 300 kg traded on last year's Pushya Nakshatra-Dhanteras festivals in Gujarat,” said Haresh Acharya, director, IBJA.
Pent-up demand, investors faith in gold as an asset class and many wedding occasions scheduled after Diwali have propelled gold sales during the ongoing Diwali festivities, said jewellers. Gold price settled at Rs 49,600 per 10 gram on Tuesday in the Ahmedabad market.
“After a period of five years, gold demand in Gujarat is at this level. Sales volumes were largely driven by wedding jewellery purchases. Coins and bars purchases also caused an upswing in demand. Investors have kept their faith intact in gold, especially after leveraging on good returns on their investments during and after the pandemic. Therefore, people are investing in big numbers in anticipation of prices firming up in the coming months,” added Acharya.
Jewellers suggest that that consumer sentiment overall remained positive as customers walked-in to buy light-weight jewellery including rings, earrings, light-weight neck chains and other trinkets. According to estimates, at least 100kg gold would have been traded in Ahmedabad alone on Dhanteras.
Besides gold, demand for silver remained good too. Silver price settled at Rs 66,200 per kg in the Ahmedabad market on Tuesday.
Several young buyers are coming out to buy both gold and silver jewellery as well as bullion, as they have realised the importance of saving up, suggest industry players.
“Silver demand has opened up very well this festive season and young buyers have come out in huge numbers to purchase light-weight silver jewellery. It is not just light on the pocket but also comes with elegant designs. In fact, jewellers are launching their specialised collection of silver jewellery as well,” said Jigar Soni, president, Jewellers’ Association of Ahmedabad (JAA).