Mumbai: Curious mix of gloom and joy will drive gold sales at Dhanteras

MUMBAI: For a trade that believes in good omens, Dhanteras 2022 brings the promise of plenty. Jewellers citywide are eagerly looking forward to the festive weekend because, in a rare occurrence, the Dhanteras mahurat spans two days, October 22 and 23.
"I am hopeful that this will be a blockbuster Diwali like no other in recent years," said Surendra Mehta, national secretary of IBJA (India Bullion Jewellery Association). "The bazaars are buzzing with activity. If you visit certain stores in Zaveri Bazaar, you will think you have entered a ration shop!"
On Thursday, 22 carat gold was priced Rs 46,009 per 10 gm while 24 carat was Rs 50,228 per 10 gm, according to IBJA figures.
A curious blend of gloom and joy, both at the national and international level, is expected to drive up gold sales at Dhanteras 2022.
"The falling rupee, economic uncertainty and the upset caused by the Russia-Ukraine conflict is causing consumers to invest in gold. After all, this is an asset whose value is sure to appreciate with time," said Mehta. "At Dhanteras 1990 the rate was Rs 3,510. In 2017, it was about Rs 30,000. At Dhanteras 2021 prices rose to Rs 47,664. So one's gold assets are only gaining in value."
Colin Shah, managing director, Kama Jewellery, said the bullion trade is driven by sentiment. "And overall the sentiment is one of optimism. International gold prices have witnessed a correction [dip] lately, so the bullion rate in India is stable at Rs 51,000 per 10 gm despite the falling rupee. Equally, we have had a robust monsoon. And this the first full scale Diwali since 2019. All these are cumulative factors that are driving Indians to purchase gold this Dhanteras," he said.
Mehta says the wedding season is upon us so heavy jewellery is also in demand apart from small items of jewellery or token mahurat purchases. Both experts say the rural market is booming with demand owing to a good monsoon.
Shah and Mehta both say the mandatory hallmarking of jewellery introduced this past year has also instilled confidence in buyers.
Colin Shah says gold constitutes 70% or the lion's share of Dhanteras purchases but diamond jewellery has also made inroads with 30% buyers gravitating here.
Vipul Shah, president of Gems and Jewellery Export Promotion Council, was cautiously optimistic about the demand for diamond jewellery. "There is a slight slack in demand. But we need to see how it all shapes up in the Diwali week and later on during the marriage season."
Ashok Gajera, owner of Laxmi Diamonds, said non-certified small diamond jewellery is selling well in India. "In the run up to Dhanteras and Diwali, we expect sales to pick up. But people are preferring smaller budget jewellery," he said.