Softer Demand for Gold Amid Soaring Prices
Gold demand has traditionally surged on Dhanteras, but this year’s high prices appear to have moderated enthusiasm. With 24K gold prices reaching ₹80,460 per 10 grams and 22K and 18K gold priced at ₹73,760 and ₹60,350 per 10 grams respectively, consumers seem more cautious. Last year, gold was significantly cheaper, making it more accessible to a wider range of buyers. Consequently, this year’s elevated prices drove many consumers towards lighter, more affordable jewelry pieces or to explore other options.
According to data from jewelry associations, sales figures for gold on Dhanteras are expected to reach about 22 tons nationwide, marking a slight dip from previous years. Joyalukkas and other large jewelry brands noticed that buyers are increasingly interested in 1-3 lakh range jewelry, particularly diamond and lightweight pieces.
Rise in Silver Demand: The Preferred Choice in 2024
While gold saw a slowdown, silver experienced a surprising 30-35% surge in demand this Dhanteras. Many shoppers favored silver over gold, finding it more accessible and affordable during these challenging economic times. The All India Gem & Jewellery Domestic Council noted that silver’s affordability played a big role, attracting both younger and first-time buyers who found it a more budget-friendly way to celebrate Dhanteras.
Additionally, retailers observed that younger consumers played a significant role in boosting silver’s popularity. As stock market volatility increased, many in this demographic sought precious metals as a stable investment. Silver’s relatively lower entry point and rising resale value added to its appeal, making it the metal of choice for many.
Changing Consumer Preferences: Light and Diamond-Studded Jewelry
One of the notable shifts this Dhanteras was the increasing demand for lightweight and diamond-studded jewelry over traditional heavy gold pieces. Jewelers across India reported that instead of pure gold ornaments, shoppers favored diamond-studded gold jewelry, kundan, and jadau (embellished) jewelry that offered a more versatile, fashionable appeal. This trend reflects a broader shift towards personalized and modern jewelry designs that appeal to younger, urban consumers looking for unique styles that fit daily wear.
Rising Prices, Shifting Tastes, and the Future of Gold Demand
Dhanteras 2024 highlighted a shift in how consumers approach precious metals. While gold’s allure remains strong, price-sensitive buyers are adapting their preferences, embracing lighter and mixed jewelry, or turning to silver as a more accessible option. With 2024 seeing an overall reduction in gold demand compared to previous years, the jewelry market may continue to witness evolving buyer behavior as consumers seek affordability, style, and investment value.
