MUMBAI (Scrap Monster): India reported a big slump in sale of gold on Dhanteras- the most significant day for buying gold in India. High gold prices, shortage of gold supply and fluctuations in international gold prices kept customers away from gold. On the other hand, silver stole the glitter of gold. This Dhanteras saw increased demand for Silver ornaments and articles.
According to estimates, the sale of gold ornaments and coins declined by more than 40% when compared with last year. The response to gold coins was immensely poor. 100 grams, 50 grams and 10 grams coin found no buyers. Many customers opted for 2 gram coins. Almost 90% of the customers opted for 10 grams silver coins instead. Customers were seen reluctant to take any risk by buying gold at such expensive rates. Although the gold prices were at comparatively lower prices than the previous year, the high fluctuation in gold prices during recent times made customers stay away from the yellow metal.
Reports from different parts of the country suggest that this was one among the worst Dhanteras seen ever. Shops had only limited collection, due to tight supply crunch. Long queues and crowded shops were not spotted anywhere. If at all there was a demand, it was only for silver coins, jewellery and household articles made out of silver.
Traders indicate that silver bars embossed with gods were in good demand during this festive season. As per preliminary estimates, Silver sales have almost doubled over last year. Beyond doubt, silver has scored over gold in India during Dhanteras.