HYDERABAD/MUMBAI: For the first time in the history of the Indian jewellery market, silver glittered more than gold this Dhanteras. As gold prices continued their record-breaking run, it dampened consumer demand. Shoppers instead rushed to buy silver.
“Silver sales have shot up 30-35% this year despite prices being 40% higher than last Dhanteras,” Surendra Mehta, national secretary at Indian Bullion & Jewellers Association (IBJA), said. “We are collating data for silver because this is the first time we are seeing such a huge demand,” Mehta told TOI.
For one, the high price of gold dissuaded many buyers and prompted them to look at silver instead. In addition to the demand for silver jewellery, the expected high industrial demand for the white metal – mainly from booming EV manufacturers – is making it the most sought-after precious metal now. “People have now begun to understand that there is a real opportunity in investing in silver,” Mehta added.

While demand for silver during Dhanteras this year surged 30-35%, sales of gold were 15% lower at around 35-36 tonne as compared to 42 tonne last festive season. However, thanks to about a 30% rise in average price of the yellow metal, sales (in value terms) were higher at nearly Rs 28,000 crore from about Rs 24,000-25,000 crore last year.
The World Gold Council too has projected that India’s gold demand could hit a four-year low in 2024 due to the unprecedented record-breaking rally in prices. In Wednesday’s mid-session, gold prices on NYMEX went above the $2,800-per-ounce mark for the first time in history on the back of global uncertainties relating to geopolitical issues, the US election, as well as continuing demand from central banks and the solar energy industry.
Gold demand in India – the world’s secon-biggest consumer of the precious metal – could stand between 700 tonne and 750 tonne in 2024, the lowest since 2020 and down from last year’s 761 tonne, Sachin Jain, regional CEO (India) at WGC, was quoted as saying by Reuters.
In the local market and commodities exchange, gold price was hovering above the Rs 80,000 per 10 gram level, while silver prices stayed above the Rs 1 lakh per kg mark.
Saumil Gandhi, senior analyst (commodities) at HDFC Securities, said that gold’s record on Wednesday came after the US treasury yields and the dollar fell following mixed US macro data.