Gold Demand to Peak in Dhanteras, Boosted by Strong Diwali Sales

SEATTLE (Scrap Monster): The gold jewellers in India expect gold sales to peak during Dhanteras, mainly driven by strong Diwali sales. The prevailing festive mood in the country, reduced chances of third wave of the Covid-19 pandemic and subdued gold prices are likely to favour seasonal gold jewellery sales, said All India Gems and Jewellery Domestic Council (GJC).

According to Ashish Pethe, Chairman, GJC, the sales by the industry will be able to touch pre-Covid-19 sales of 2019 this year, mainly because the gold prices are currently hovering around levels, which are nearly 5% lower than previous year levels. The increased number of weddings is also expected to boost gold sales during this period, he added.

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The robust demand since Navratri is likely to continue on Dhanteras. The industry expects that October and November will account for approximately 40% of the total annual sales in 2021. The World Gold Council (WGC) expects gold demand to surge significantly during the quarter, mainly driven by good monsoons, softer gold prices and strong wedding season. The demand for gold jewellery in the country had registered 58% surge in July-Sep’21 quarter to total 96.2 tonnes, it said.

The investment in digital gold and investment through gold-backed exchange traded funds (ETFs) are also expected to flourish during Dhanteras.