HYDERABAD/MUMBAI: For the primary time within the historical past of the Indian jewelry market, silver glittered greater than gold this Dhanteras. As gold costs continued their record-breaking run, it dampened client demand. Buyers as a substitute rushed to purchase silver.
“Silver gross sales have shot up 30-35% this 12 months regardless of costs being 40% increased than final Dhanteras,” Surendra Mehta, nationwide secretary at Indian Bullion & Jewellers Affiliation (IBJA), mentioned. “We’re collating knowledge for silver as a result of that is the primary time we’re seeing such an enormous demand,” Mehta instructed TOI.
For one, the excessive worth of gold dissuaded many consumers and prompted them to have a look at silver as a substitute. Along with the demand for silver jewelry, the anticipated excessive industrial demand for the white steel – primarily from booming EV producers – is making it essentially the most sought-after valuable steel now. “Folks have now begun to know that there’s a actual alternative in investing in silver,” Mehta added.
Whereas demand for silver throughout Dhanteras this 12 months surged 30-35%, gross sales of gold have been 15% decrease at round 35-36 tonne as in comparison with 42 tonne final festive season. Nonetheless, due to a few 30% rise in common worth of the yellow steel, gross sales (in worth phrases) have been increased at practically Rs 28,000 crore from about Rs 24,000-25,000 crore final 12 months.
The World Gold Council too has projected that India’s gold demand may hit a four-year low in 2024 as a result of unprecedented record-breaking rally in costs. In Wednesday’s mid-session, gold costs on NYMEX went above the $2,800-per-ounce mark for the primary time in historical past on the again of worldwide uncertainties referring to geopolitical points, the US election, in addition to persevering with demand from central banks and the photo voltaic power business.
Gold demand in India – the world’s secon-biggest client of the dear steel – may stand between 700 tonne and 750 tonne in 2024, the bottom since 2020 and down from final 12 months’s 761 tonne, Sachin Jain, regional CEO (India) at WGC, was quoted as saying by Reuters.
Within the native market and commodities change, gold worth was hovering above the Rs 80,000 per 10 gram degree, whereas silver costs stayed above the Rs 1 lakh per kg mark.
Saumil Gandhi, senior analyst (commodities) at HDFC Securities, mentioned that gold’s file on Wednesday got here after the US treasury yields and the greenback fell following combined US macro knowledge.
