Dhanteras Sees Surge in Gold and Silver Sales Amid Price Drops in Nagpur

Nagpur: The prices of gold and silver saw a significant drop on Dhanteras, the day when there is a rush to buy precious metals, much to the delight of consumers. Jewellers in the city reported a surge in customer interest, making the festive season even more vibrant. On Saturday, gold rates fell by 2,500/tola to touch 1.28 lakh/tola, while silver prices dropped by 7,000/kg to 1.70 lakh/kg. Platinum prices, which had been stagnant for years, increased to 60,000 per 10gm, a rise of 11,000 in just a month, according to market sources.

In Nagpur district, the jewellery industry witnessed a trade of around 150 crore. Most of the items sold were gold coins, mangalsutras, chains, rings, and earrings. The response has been quite positive, and since Dhanteras falls on a Saturday and Sunday this year, the trend is expected to continue into Sunday with robust sales, said Rajesh Rokde, chairman of the Gems and Jewellery (Domestic) Council (GJC) and president of Nagpur Sarafa.

The domestic prices of both gold and silver are derived from the rates quoted on global exchanges like the New York Mercantile Exchange (NYMEX). Both metals have eased in India as the prices corrected at NYMEX. Gold rates came down by 100 dollars an ounce from the peak, touching $4,251. Silver rates also receded to $51 an ounce from an all-time high of $54 an ounce, according to traders. This correction was reflected in the Indian prices, said Rokde.

The domestic rates are determined through complex calculations, converting ounces into tola (for gold) and kg (for silver), factoring in exchange rates, and adding customs duty. The availability of fresh supply has brought down silver prices, and the additional premium that was charged has also decreased, noted traders.

The GST cut has also led to increased buying in other market segments like automobiles, consumer durables, and real estate. Ashish Kale, a four-wheeler dealer and former president of the Federation of Automobile Dealers Association (FADA), reported an 80% jump in bookings for two-wheelers. The demand has been driven by a 10% GST cut in the segment. There was a slump in the commuter segment of two-wheelers and entry-level car sales before the cut, he said. Bookings for SUVs also increased by 50%. However, supplies are not reaching dealers at the same pace, Kale added.

This Dhanteras can be termed the most favourable for builders after the pandemic, said Shravan Kukreja of M/s Kukreja Infrastructures. Consumers were seen making quick decisions on real estate purchases this time, he noted.