HYDERABAD/MUMBAI: For the first time in 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 shopper demand. Shoppers as an alternative rushed to purchase silver.
“Silver sales have shot up 30-35% this year despite prices being 40% higher than last Dhanteras,” Surendra Mehta, nationwide secretary at Indian Bullion & Jewellers Association (IBJA), stated. “We are collating data for silver because this is the first time we are seeing such a huge demand,” Mehta advised TOI.
For one, the excessive value of gold dissuaded many consumers and prompted them to have a look at silver as an alternative. In addition to 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. “People have now begun to understand that there is a real opportunity in investing in silver,” Mehta added.
While demand for silver throughout Dhanteras this yr surged 30-35%, gross sales of gold had been 15% decrease at round 35-36 tonne as in comparison with 42 tonne final festive season. However, because of a few 30% rise in common value of the yellow steel, gross sales (in worth phrases) had been greater at almost Rs 28,000 crore from about Rs 24,000-25,000 crore final yr.
The World Gold Council too has projected that India’s gold demand may hit a four-year low in 2024 because of the 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 first time in historical past on the again of worldwide uncertainties regarding 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 shopper of the dear steel – may stand between 700 tonne and 750 tonne in 2024, the bottom since 2020 and down from final yr’s 761 tonne, Sachin Jain, regional CEO (India) at WGC, was quoted as saying by Reuters.
In the native market and commodities alternate, gold value was hovering above the Rs 80,000 per 10 gram stage, whereas silver costs stayed above the Rs 1 lakh per kg mark.
Saumil Gandhi, senior analyst (commodities) at HDFC Securities, stated that gold’s file on Wednesday got here after the US treasury yields and the greenback fell following combined US macro information.
