Ahmedabad: This Pushya Nakshatra, gold seems to have lost a bit of its lustre in Ahmedabad. While the auspicious day is typically marked by a surge in gold purchases, this year saw a 20% drop in volume as gold prices skyrocketed to a dazzling Rs 81,000 per 10g on Thursday.
Despite the decline in volumes, the value of sales was a little brighter, inching up by 4% to Rs 32.4 crore, compared to Rs 31.15 crore last year.Some 40-45 kg of gold changed hands in the city, estimates the Jewellers' Association of Ahmedabad (JAA). Across Gujarat, about 300kg of the precious metal was traded, according to the India Bullion and Jewellers' Association (IBJA).
Haresh Acharya, director of IBJA, said, "Although high gold prices have dampened overall demand, the momentum for gold is still strong, especially with Dhanteras around the corner. We expect better sales as the festival season progresses."
Jewellers suggest there's more demand for bullion than jewellery. Only those families wherein wedding occasions are lined up are purchasing 22-carat gold jewellery. Manoj Soni, a jeweller from Ahmedabad, explained, "The demand for gold coins and bars has remained steady, especially for gifting and investment purposes. Due to high prices, smaller coins of 1g, 2g, and 5g are also picking up well, while jewellery purchases are now limited mostly to weddings. Lightweight, 18-carat gold jewellery is witnessing good traction."
Silver prices, on the other hand, stood at Rs 1.01 lakh per kg on Thursday. Silver, too, had its moment, with strong demand for coins, bars and even dinner sets and artefacts, besides larger jewellery.
Meanwhile, the rising demand for lab-grown diamond jewellery added sparkle to the day. Param Begani, a retailer in this segment, noted a 25% increase in sales compared to last year. "Lab-grown diamonds offer an affordable alternative, especially as natural diamond jewellery becomes costlier. The higher demand for 18-carat and 14-carat gold jewellery also shows how buyers are adjusting to soaring gold prices," he said.
Jewellers remain optimistic as Dhanteras approaches, hoping for a revival in demand despite the dizzying heights of the gold market. With coins, bars and lightweight pieces becoming the go-to choices, the yellow metal still holds its charm, albeit in smaller doses.
JAA president Jigar Soni added, "Since the early hours of the day, there's been significant demand for coins and bars, especially in smaller quantities of 1 to 5 grams. The average ticket size for gold purchases was Rs 1 lakh, while for silver, it hovered around Rs 15,000. Lightweight gold jewellery and silver ornaments for everyday wear were seeing steady demand."