Gold vs Silver on Dhanteras: How Smart Indian Shoppers Are Preparing for This Festive Season

Jewellers expect improved consumer sentiment this Dhanteras on November 6 after a correction in gold and silver prices. While sales volumes are likely to remain largely flat year-on-year, industry representatives expect sales value to rise by 15-30%.

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Gold price fall lifts jewellery demand, sales value may rise up to 30%

Dhanteras falls on November 6 this year. The festival is considered an auspicious occasion to buy gold and silver and its early arrival in the month could also support spending, as many consumers are likely to have received their salaries.

Jewellers are expecting a stronger festive shopping season this Dhanteras as the recent fall in gold prices has encouraged consumers to return to the market. Buyers are showing interest in lightweight jewellery, gold coins and smaller purchases, while silver is also attracting attention, particularly among younger customers.

However, industry representatives expect the overall volume of sales to remain close to last year's levels. The value of sales, on the other hand, could rise by 15-30%, depending on the category and retailer.

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Gold price correction brings buyers back

All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde told news agency PTI the correction in gold prices had improved consumer sentiment and was likely to support demand during the festival.

Gold was trading at around Rs 1.10 lakh per 10 grams during the corresponding period last year. Its price had climbed to Rs 1,62,900 per 10 grams on May 29 before falling by Rs 20,900, or 12.8%, to Rs 1,42,000 on October 31.

The metal was trading at Rs 1,46,600 per 10 grams on Wednesday, up Rs 4,800 from the previous session's closing level.

Rokde said the industry expected sales volumes to remain largely flat compared with last year, although sales value could increase by 20-30%. He added that inflation, geopolitical tensions and the drought-like situation in Maharashtra could affect consumer sentiment.

However, he expects the impact of inflation on bullion purchases to be limited because buyers generally use their savings to purchase gold.

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Lightweight jewellery and silver gain attention

With gold remaining expensive despite the recent correction, buyers are showing greater interest in lightweight designs. Silver jewellery and coins are also emerging as popular alternatives.

GJC Vice Chairman Avinash Gupta said the fall in gold and silver prices had improved sentiment across the country. Jewellers expect demand to grow by 15-20% in value terms, while sales volumes could remain at last year's level.

He said the market had slowed over the previous six months as gold and silver prices increased. The Prime Minister's appeal to citizens to avoid buying gold had also affected demand, he added.

Gupta expects lightweight jewellery to perform well, with some wedding buyers shifting towards 18-karat gold. In the silver segment, the industry is anticipating a 10% year-on-year increase in sales volume following a nearly 50% correction in prices.

He also pointed to a growing trend of families combining gold and silver purchases for weddings. While gold jewellery is preferred for the main wedding ceremony, silver jewellery and articles are being considered for other rituals.

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Wedding purchases may lift gold demand

Sachin Jain, Regional CEO for India at the World Gold Council, said the correction in gold prices could encourage families planning weddings over the next three to six months to bring forward their purchases.

He expects demand across different categories, including premium jewellery, gold coins and bars. The improved price levels could encourage both jewellery buyers and those looking at gold as an investment.

This could give the market support beyond regular Dhanteras purchases, particularly from families preparing for the upcoming wedding season.

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Jewellers expect festive sales growth

Jewellery companies are also reporting encouraging signs ahead of the festival.

Suvankar Sen, Managing Director and CEO of Senco Gold Ltd, said the company was optimistic about recording growth of more than 20% this festive season compared with last year.

He said the correction of around 8-10% in gold prices had encouraged buyers to experiment with different designs and gold caratages, while paying attention to quality, value and versatility. The company has also seen encouraging demand for diamond jewellery, with growth of more than 25-30%, he added.

Colin Shah, founder and Managing Director of Kama Jewelry, said softer gold prices had brought relief to consumers ahead of the festive season. He noted that demand was shifting towards lightweight studded jewellery in the 9-karat to 19-karat range.

This trend has also supported demand for both lab-grown and natural diamonds, particularly in the Rs 1.5 lakh to Rs 3 lakh price range.

Shah expects a slight decline of around 10% in sales volume, citing the impact of the rupee-dollar exchange rate on gold prices in India. He said sales value could remain broadly similar to last year's level.

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Gold and silver likely to share festive demand

The outlook for this Dhanteras points to a market where buyers are adjusting their choices rather than stepping away from jewellery purchases altogether.

Lower gold prices have improved sentiment, but affordability remains a concern for many households. Lightweight designs, lower-carat gold, silver jewellery and coins are offering buyers more options across different budgets.

Jewellers are therefore expecting a mixed festive season: sales volumes may not rise significantly, but higher-value purchases and demand across jewellery categories could help lift overall sales value.

(With agency inputs)