Gold and jewellery sales were muted so far on the occasion of Dhanteras as people preferred silver coins and utensils for token buying amid slow consumer spending and high rates of the precious metal, according to industry players.
Dhanteras, celebrated in northern and western parts of India on Friday, is considered an auspicious day for buying gold, silver and other valuables.
However, organised players like Titan and UT Zaveri are hopeful of good footfalls later during the day as many people are taking delivery of pre-booked orders.
Gold prices are ruling at around Rs 39,000 per 10 gram on this Dhanteras, as against Rs 32,690 per 10 gram on the same day in 2018.
Stating that high gold rates and demand slump are likely to dent sales this time, Delhi’s Karol Bagh Jewellery Association President Vijay Khanna said most buyers are restricting their purchase to tokens, especially for investment purpose.
“We see flat sales this Dhanteras but hope to recover during the wedding season in the coming days,” he added.
In India, unorganised players make up for roughly 70% of the country’s gold sales.
Khanna Gems Pvt Ltd Managing Director Pankaj Khanna said there is a “positive trend” in terms of silver coin sales this time as buyers are preferring white metal due to high rates of gold.
“We are hopeful of crossing 100 kg silver coin sales through our online platform, up from 23 kg last Dhanteras days,” he said, adding that the company is selling hallmarked silver coins.
India is the world’s largest consumers and importer of gold.