Lower prices add glitter to Dhanteras gold sales

Kolkata: A nearly ₹3,000 per 10 gm correction in gold prices on Dhanteras has injected fresh impetus to festive buying, lifting jewellery sales volume by 8-10% and value growth by 18-20%, jewellers said.

The price dip spurred consumers to step up purchases despite gold remaining at comparatively elevated levels, with demand gathering momentum not just in metros but also in Tier II and III cities. The yellow metal was trading at ₹1.41 lakh per 10 gm Friday, compared with ₹1.44 lakh per 10 gm the day before.

"We are witnessing strong consumer enthusiasm across markets this Dhanteras, with showroom footfalls picking up significantly," said Ramesh Kalyanaraman, executive director, Kalyan Jewellers. "The correction in gold prices has certainly provided an added impetus to festive purchases."


He said smaller cities such as Jaipur, Dehradun, Surat, Belgaum, Agra and Raipur are witnessing encouraging traction, reflecting the expanding geographical footprint of organised jewellery retail. Notably, buyers are increasingly opting for lightweight jewellery, coins and smaller-ticket purchases.

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Senco Gold reported a more than 25% surge in sales value over last Dhanteras, with higher footfalls, strong diamond jewellery sales and participation from wedding shoppers contributing to growth. "We have witnessed an exceptionally strong customer response, with sales value growing by over 25% compared to last year," said MD & CEO. Suvankar Sen.

Sen said traditional gold jewellery and coins are continuing to attract buyers, while lighter and more versatile designs are also gaining popularity. The company also saw growing interest in its 9K and 14K gold collections, catering to younger and first-time buyers, besides men's jewellery under its Aham brand. Jewellery worth ₹50,000- ₹2 lakh saw greater traction, he said.

At P N Gadgil Jewellers, early indicators pointed to a 25-30% incremental performance for the industry over last year. "Prices having eased from their highs has helped sentiment, and bookings have been very strong in the run-up to Dhanteras, with many deliveries planned through Diwali," said Saurabh Gadgil, chairman and MD, P N Gadgil Jewellers. He said the industry is expecting gold and silver sales of around ₹40,000 crore this Dhanteras.

Wedding and temple jewellery, lightweight gold and diamond pieces, and everyday wear designs in 18K and 14K gold are among the preferred categories. Silver jewellery and articles also attracted buyers looking for festive purchases. The average industry ticket size is estimated at around ₹1.2 lakh, although it varied considerably across categories.

Gadgil said industry indications suggested that upwards of 60% of transactions in Tier II and III markets involved exchange of old jewellery, allowing consumers to upgrade or buy new pieces without bearing the entire cost upfront.