Mirroring slowdown in the economy, pre-Diwali Dhanteras sale of gold and silver dipped by as much as 40 per cent as high prices and lower consumer spending hit demand.
Dhanteras, considered the most auspicious day in Hindu calendar for buying items ranging from precious metals to utensils, was a muted affair in most markets across the country with traders complaining of lesser footfall and reduced consumer spending.
On Friday, gold prices rose by Rs 220 to Rs 39,240 per 10 gram in the national capital, up by 20 per cent compared to 2018 Dhanteras when the rates stood at Rs 32,690 per 10 gram.
According to the Confederation of All India Traders (CAIT), about 6,000 kg of gold worth Rs 2,500 crore was estimated to have been sold till evening on Dhanteras day, as against 17,000 kg of gold worth Rs 5,500 crore on this auspicious day in 2018.
"As per an estimate, there was a decline of business from 35 to 40 per cent which is a cause of major worry for the traders," CAIT's Gold and Jewelery Committee Chairman Pankaj Arora said in a statement.
Sales were down as prices of both gold and silver have sharply increased from over last Dhanteras, which has weakened the demand, he said, adding it was perhaps the "most disappointed Dhanteras" for the traders in past more than 10 years.
Jewellers' apex body All India Gem and Jewellery Domestic Council (GJC) chairman Anantha Padmanaban said, "In volume terms, we expect sales to be 20 per cent less than last year. In terms of value, it will be same as last year because of higher prices."
Kumar Jain of UT Zaveri in Mumbai's Zaveri bazaar said, "The momentum has picked up and there is rush for wedding jewellery bookings. Small ticket size items are doing extremely well."
World Gold Council India Managing Director Somasundaram PR said, "The sharp rise in the gold price and deep discount in the bullion market impacted trade and the consumer outlook in Q3, however, Dhanteras seems to have changed this as had been expected."