Silver, diamonds shine as gold loses lustre on Dussehra

Ahmedabad: Dussehra usually ushers in festive cheer for bullion dealers and jewellers, but the record-high prices of gold put a damper on sales. While overall gold sales dropped 25% from last year, there was a glimmer of hope as silver and lab-grown diamonds emerged as popular choices for buyers.
The price of gold touched a record Rs 78,500 per 10g in Ahmedabad on Saturday, leading to a significant decline in sales from 400kg in 2023 to 300kg on muhurat day this day, according to estimates by India Bullion and Jewellers' Association (IBJA).
Hemant Choksi, general secretary of Shree Manek Chowk Choksi Mahajan, explained, "The demand for gold and silver has been affected by the extremely high prices, which are hard for people to stomach in these inflationary times. Unlike past years, the markets in Ahmedabad's old city wore a deserted look. Compared to last year, demand was fairly low."
Gold prices appreciated by 26.2% this year, rising from Rs 62,200 per 10 grams last Dussehra to Rs 78,500 this year. Silver followed a similar trend, appreciating from Rs 72,500 per kg to Rs 91,500.
Haresh Acharya, director of IBJA, said, "People who invested in gold last year received hefty returns. Geopolitical tensions in the Middle East, coupled with the rate cut by the US Federal Reserve, which pushed international gold and silver prices up. This pushed up prices in the domestic market as well and hit gold sales this Dussehra.
"However, the sales have been better than we expected. Bullion dealers reported a steady outflow of gold throughout the day, indicating good demand. If the prices do not increase further, we can expect the momentum to continue through Dhanteras and Pushya Nakshatra, which are good muhurats for purchasing precious metals."
Jewellers reported that bullion purchases, including gold bars and coins, accounted for 50% of the sales, while jewellery made up the other half. "This time around, monsoon was good, and agriculture earnings are stable. This has led to strong demand from the rural Gujarat belt. People are buying both bars and coins as well as jewellery. Those with weddings planned in the coming months accepted deliveries of their purchases today. Many of them also finalised their purchases today," said Manoj Soni, member of Jewellers' Association Ahmedabad (JAA).
Silver jewellery and lower-carat gold options, such as 14- and 18-carat gold, saw increased demand due to the soaring gold prices.
"Many customers pre-booked gold or purchased gold bars when prices dipped soon after the import duty cut announced during the Union Budget in July 2024. Today's deliveries reflect strong sales in exchange for gold. We are observing a healthy 50:50 split between bullion and jewellery sales. Additionally, silver jewellery, including kada, bracelets and anklets, is gaining popularity, especially with more and more people choosing silver for daily wear. Platinum is priced around Rs 39,000, and thus jewellery demand has remained stable. Lab-grown diamonds priced in the Rs 10,000 to Rs 22,000 range are selling well, particularly rings and pendants. Meanwhile, natural diamond demand remains robust with the recent price reduction," explained Jigar Soni, president of JAA.