Diwali 2024: Silver glitters more than gold in Indian jewellery market for first time this festive season
This festive season, gold sales reportedly saw a decline of around 15% in volume, marking a sale of 35-36 tonnes compared to 42 tonnes in 2023. Meanwhile, silver sales surged by 30-35%, despite a price rise of nearly 40% from last year.
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FollowFor the first time in India’s history, silver demand has eclipsed that of gold during this festive season, especially on Dhanteras. The rapid surge in gold prices significantly dampened consumer demand, pushing buyers towards silver instead.
Amid record-breaking highs, gold sales reportedly saw a decline of around 15% in volume, marking a sale of 35-36 tonnes compared to 42 tonnes in 2023. Meanwhile, silver sales surged by 30-35%, despite a price rise of nearly 40% from last year.
Surendra Mehta, national secretary at the Indian Bullion & Jewellers Association (IBJA), reported an unprecedented demand for silver, with the association now actively tracking the metal's sales data.
"Silver sales have shot up 30-35% this year despite prices being 40% higher than last Dhanteras. We are collating data for silver because this is the first time we are seeing such a huge demand," Mehta was quoted as saying in a Times of India report.
The high cost of gold has encouraged consumers to consider silver as an affordable alternative and the anticipated high industrial demand for silver, driven by the electric vehicle (EV) industry, is adding to its appeal as a precious investment.
"People have now begun to understand that there is a real opportunity in investing in silver," Mehta told TOI.
Gold sales, while down in volume, saw a boost in value terms due to the metal’s climbing prices. This Dhanteras, sales values for gold hit approximately Rs 28,000 crore, up from Rs 24,000-Rs 25,000 crore in 2023, despite the lower purchase volume.
Gold’s pricing surge, fueled by global uncertainties like geopolitical tensions, US election uncertainties, and sustained central bank demand, has seen the price hit a historic high of $2,800 per ounce on the NYMEX.
The World Gold Council (WGC) projects a challenging year for gold demand in India, forecasting a four-year low with expectations between 700 to 750 tonnes, a decrease from last year’s 761 tonnes. WGC’s India regional CEO, Sachin Jain, attributes this to soaring prices, which have reached above Rs 80,000 per 10 grams domestically, while silver is holding steady at over Rs 1 lakh per kilogram.
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