Gold sales boom in India during Diwali, boosted by fall in gold prices
Zhitongcaijing · 11/13 10:57

The Zhitong Finance app learned that during India's Diwali weekend, due to the recent drop in gold prices, local gold jewelers are booming in sales.

According to information, due to the sharp rise in gold prices caused by the Israel-Hamas war in early October, Indian jewelers are worried that buyers will hesitate during the holiday season. However, as the possibility of an escalation of the conflict in November declined, the price of gold declined somewhat. This may boost sales between October and December (which Indians consider to be auspicious days to wear gold) and may help support global gold prices by limiting losses.

Surendra Mehta, National Secretary of the Gold and Silver Jewellery Association of India, said that on the first day of Diwali, demand from India, the second largest consumer of gold in the world, increased 8%. He said that gold coins account for about one-third of sales, and the rest is jewelry. Ahead of Diwali, the All India Federation of Traders expects Diwali sales to exceed 500 billion rupees ($6 billion), particularly gold, clothing, and household goods.

The World Gold Council expects that India's gold sales in the second half of 2023 will partially offset weak consumption from January to June. The agency estimates that total demand for 2023 is expected to be between 700 tons and 750 tons, down from 774 tons last year.

Ajoy Chawla, CEO of Tata Group's Titan Co. jewellery division, said consumer sentiment had risen markedly during the past three weeks of the holiday season. He said the company is optimistic that with the help of the recent cooling of gold prices, sales during this period will reach new highs.