Gold failed to glitter this Dussehra as sharply higher prices deterred many consumers, eroding sales by a quarter to 18 tonnes from last year, according to industry body India Bullion & Jewellers Association (IBJA).
By value, sales of the yellow metal however climbed by 30-35% consequent to the prevailing high prices. The retail price of gold on Dussehra this year, which was celebrated on Thursday, was Rs 1.16 lakh per 10 gm, a 48% jump from Rs 78,000 per 10 gm on Dussehra 2024. Consumers need to pay goods and services tax (GST) of 3% in addition to the bullion price. A making charge of 15-30% is also levied by jewellers depending on the jewellery design.
“Last year Dussehra was a better one as the volume of gold sold was 24 tonnes. This year, the prices have remained at `1.16 lakh per 10 gm on Dussehra, which has dented the demand,” said Surendra Mehta, national secretary of IBJA.
Exchange of Old Gold Rampant
“However, consumers have started buying gold as they feel that prices might not fall from this level any soon. Consumers are placing orders for the upcoming Dhanteras, Diwali and wedding season,” he said. Many Indians prefer to buy gold on Dussehra as it is believed that the precious metal brings good luck, success, and prosperity for the entire year. On Friday, gold was trading at Rs 1,16,883 per 10 gm at the retail end, excluding GST.
Demand for gold and silver coins have picked up well this Dussehra as many are buying them as an investment tool. Jewellers said gold coins of 5 gm denomination are selling more while silver coins of 20 gm are flying off the shelves. “Investment demand for gold and silver bars remains robust, and customers are making purchases despite price movements. Bullion continues to do well, while bangles, necklaces, and diamond jewellery are showing encouraging momentum,’ said Saurabh Gadgil, managing director of Pune-based PNG Jewellers. He said bookings in lightweight jewellery are encouraging, while exchange of old gold is continuing to sustain demand, contributing nearly 50-55% of sales.The trend of exchanging old gold has accelerated across the country as high bullion prices are keeping consumers away from making fresh purchases. “They are keen to buy 5 or 7 gm of gold in addition to their old gold and get jewellery of their own design,” said Mehta, who is based in Mumbai’s Zaveri Bazaar, a major gold trading hub.
Vikas Kataria, promoter of Madhya Pradesh-based jeweller D.P. Abhushan, however, noted encouraging demand across central India. “Wedding jewellery from diamonds to lightweight and polki designs is also performing well, setting a very positive tone for the festive season. Despite higher gold prices, sentiment remains strong,” he said.
In South India, jewellers reported lower sales of gold during the ongoing festive season. Varghese Alukkas, MD of Jos Alukkas, said many consumers are resorting to buying gold bars to convert them into jewellery later for the upcoming wedding season. Gold exchange has also picked up. “Gold bars of 10 gm to 20 gm are selling more. We are also trying to push diamond jewellery in 18 karat, 14 karat and 9 karat, but customers are leaning more towards gold jewellery. Old gold exchange has gone up to 55-60% this Dussehra,” said Alukkas. Jos Alukkas has 63 stores spread over five states in South India.
