Dhanteras gold, silver sales to surge on lower prices

NEW DELHI: Brisk buying of gold and silver on Dhanteras day today is likely to push jewellery and coin sales by up to 30 per cent compared to last year's.

Traders attributed the spurt in buying to a sharp fall in gold prices which are ruling at Rs 27,925 per 10 grams in the national capital, about 11 per cent lower than Rs 31,300 per 10 grams on Dhanteras day in 2013.

MMTC-PAMP India President (Marketing) Vipin Raina said, "It seems consumers are on buying spree this festival we have sold our entire stock of gold and silver coins. We had minted 1.5 lakh pieces of silver coins and 25,000 pieces (1.5 tonnes) of gold coins for sale during Diwali."

Jewellers said the buying activity remained robust in the first half of the day in most places. But more sales are expected in later part of the day with office-goers in bit cities coming for buying late in the evening. People are buying both jewellery and coins.

ORRA Jewellery CEO Vijay Jain said, "While consumer sentiment was slow in the last two quarters, from Dusshera onwards, there has been a significant pickup in demand especially for gold jewellery due to fall in prices".

"We see over 30 per cent increase in sales over the last year," he said, adding that the company is giving promotional offers and sales are upbeat at 35 stores across the country.

Dhanteras is considered to be an auspicious day for buying gold, silver and other valuables. It is largely celebrated in north and west India.

Echoing views, All India Gems and Jewellery Trade Federation, Regional Chairman (North) Vijay Khanna said: "Gold demand this Dhanteras is better than last year because of lower prices. The demand for jewellery is more than coins and bars as consumers are buying to meet their marriage demand."

Lower prices and promotional offers being announced by retailers is also driving the sales this time, he added.