Gold sparkles less this Dhanteras, silver shines; digital buying picks up

Jewellers approached this Dhanteras hoping that the day’s sales would provide a breather in a year marked by sky-high gold prices. As morning came, though, their hopes were dimmed by the sight of thinly populated showrooms — empty counters on what is usually the busiest shopping day of the year for precious metals.

 

But by afternoon, a stream of customers began trickling in, and by evening, it had become a crowd — still gold sales volume remained underwhelming, according to a section of jewellers. 

“Silver sales rose 33 per cent today, while gold volume fell by 15 per cent,” said Surendra Mehta, National Secretary of the Indian Bullion and Jewellers Association (IBJA). He explained the shift as a search for returns amid high gold prices, with silver perceived as a more practical investment. Gold sales, according to Mehta, were expected to reach 35 tonnes this Dhanteras, lower than last year’s 42 tonnes. Gold prices have climbed 30 per cent since last Diwali; 10 gm standard gold was trading at Rs 78,430 on Tuesday, up 0.6 per cent from last close.

 

At Senco Gold & Diamonds, with 160 outlets across the country, foot traffic was strong, though volume had slipped by 12 to 15 percent. Despite this, CEO Suvankar Sen said, he was expecting a 10 to 12 per cent gain in value terms.

 

For Senco and others, the dual perspective reflected a larger story across the industry: Buyers are being forced to recalibrate their budgets, choosing lighter pieces, simpler designs, or shifting to silver. Many stores anticipated an eventual “value gain,” hoping higher gold prices would offset lower volumes.

 

In Delhi’s Chandni Chowk, where the narrow alleys of Dariba Kalan usually get packed with buyers on Dhanteras, business was relatively muted. Basant Kumar Gupta, president of the Dariba Kalan Vyapar Mandal and director of Roop Jewellery House, observed that foot traffic fell by 30 to 40 per cent. “Gold sales have taken a hit due to skyrocketing prices. Even in silver, demand for heavyweight items like utensils has witnessed a decline.”

 

Other shops in the area echoed similar views. “Comparatively reasonable items such as silver coins gained traction,” said the owner of Shree Adinath Jewellery, another shop in Delhi’s Chandni Chowk.  

 

Some took a more positive view, bolstered by trends toward early purchases and higher-end buyers. Saiyam Mehra, chairman of the All India Gem and Jewellery Domestic Council, noted that about a third of the day’s sales were pre-booked — a sign that shoppers still sought pieces tied to tradition but had been savvy enough to lock in prices in advance. Also, “after lower footfall in the early part of the day, customer flow improved following the end of office hours.”

 

Sachin Jain, India CEO of World Gold Council, too, was upbeat on Dhanteras sales. “A month ago, there were apprehensions on festival sales but our reports from the ground suggest a fantastic day for gold jewellery sales,” he said.

 

For leading jewellery chains, strategic new collections helped capture buyer attention. Titan’s jewellery division rolled out over 2,000 new designs in the runup to Diwali, from the Nav-Raani collection at Tanishq to disco-inspired pieces by Mia and Alive by Zoya. “We are delighted to see an encouraging response by customers so far this festive season, despite very high gold prices,” said Ajoy Chawla, Titan Company’s Jewellery division CEO. “South and East regions were off to a quick growth from Day 1 of Navratri, while West and North picked up steam from Dussehra weekend, followed by Karwa Chauth and Guru Pushya Nakshatra. Pujo sales growth in West Bengal came in strong, driven by the launch of ‘Aalo’, a specially designed regional collection.”

 

With the Dhanteras Muhurat being spread over two days this year -- October 29 and 30 – “we are hoping to witness a truly celebratory festive indulgence across all customer segments and markets,” Chawla added.

 

Kalyan Jewellers, another large chain, also drew customers: Conservative buyers gravitated toward Shagun coins, while younger ones chose lightweight or 18k jewellery. “With the upcoming wedding season, we also saw interest in elaborate pieces,” shared Executive Director Ramesh Kalyanaraman, noting that as the auspicious Mahurat extended into the next day, he anticipated a continued momentum.

 

Digi Gold, a platform for selling digital gold and silver, allowing customers to even do SIPs (systematic investment plans) also witnessed strong interest. Although this market is very small as compared to physical market, Chirag Thallar, director, Amrapali Gujarat, said: “We saw good interest in digital silver on our platform -- the only one offering digital silver. He said that digital silver sales in value terms were up 40 per cent compared a year ago.” Amrapali Gujarat has been one of the largest players in silver. 

 

A younger, more flexible clientele is also driving a shift toward diamonds, particularly lab-grown varieties, which offer a more accessible price point.

 

“Dhanteras buying is belief-based, so consumers are there. Owing to lab grown diamonds, demand is at an all-time high,” says Lisa Mukhedkar, CEO of Bengaluru-based lab grown diamond jewellery store, Aukera.

 

Aditya Modak, CFO and COO of PN Gadgil and Sons, said: “We can expect an increase in sales volume by about 5 to 10 per cent. However, when it comes to monetary value, the increase will be significantly higher.”

 

Modak noted that popularity of diamond jewellery made with 14 or 18-carat natural diamonds is rising in the Indian market.