Gold shining bright! Prices cross Rs 60,000; sales surge up to 30% during festive season despite 5.5% rise in gold rates

Gold sales have seen a significant surge during the festive season, despite the ongoing conflict in Gaza. Leading jewelers such as Malabar Gold & Diamonds, PNG Jewellers, and Senco Gold & Diamonds have reported an increase in sales of up to 30% during Dussehra-Navratri compared to the previous year, according to an ET report. This is despite a 5.5% increase in gold prices since the outbreak of the Israel-Palestine conflict.
Silver prices have also been on the rise since the ‘adhik maas’ period (July-August) and this trend continues. Gold prices, which were at Rs 57,415 per 10 gm before the attacks by Hamas, have now reached Rs 60,612 in the past two weeks.
Saurabh Gadgil, managing director of PNG Jewellers, stated that the upward trend in sales has been visible since the month of Shraadh and has intensified during Navratri. PNG Jewellers, which operates 42 stores in Maharashtra and Goa, expects a 30% increase in sales compared to the previous Dussehra. The demand for necklaces, bangles, and heavy wedding jewelry has been particularly high.

Titan’s jewelry division has also witnessed a 19% increase in sales from July to September, attributed to “healthy wedding and high-value studded purchases,” among other factors. CaratLane, in which Titan has a 98.3% stake, reported a 45% surge in sales during the same period. Over 3.5 million weddings are anticipated between now and the end of March 2024.
The anticipation of further price increases if the Gaza conflict spreads has also driven gold sales. Malabar Gold, headquartered in Kerala with a pan-India presence, reported an 18% increase in sales during Dussehra compared to the previous year. MP Ahammed, chairman of Malabar Gold, attributed this growth to strong consumer demand and steady retail expansion.

In price-sensitive Eastern India, Senco has experienced a 10-15% growth in gold jewelry sales compared to the previous Dussehra. Sales of diamond jewelry have increased by 20%, according to Suvankar Sen, managing director of Senco.
Bullion dealers have also noted a resurgence in investment and physical retail demand. Prithviraj Kothari, managing director of RiddiSiddhi Bullions, stated that the fundamental and technical landscape for gold has improved, with a long-term bullish view. Kothari expects prices to trade at least 10% higher from current levels by next year.