Dhanteras gold sales near Rs 60,000 cr as price drop lures

The price fell, and the tills rang

Indian jewellers clocked brisk Dhanteras sales on Friday, as a price correction did what price cuts often do: it pulled buyers in. The All India Gem and Jewellery Domestic Council estimates the day’s gold business at about Rs 60,000 crore, a rise of 15-20 per cent in value over last year.

But here is the twist: the weight of gold sold barely moved. Volumes are expected to stay roughly flat from a year earlier because prices, even after the fall, are higher than last Dhanteras. GJC chairman Rajesh Rokde described buyers as opting for lightweight and 18-carat pieces and “pocket-friendly items”.

The anchor nobody talks about

Behavioural science calls this price anchoring. Gold in Delhi dropped 20 per cent to Rs 1,46,300 per 10 grams from a record Rs 1,83,000 on January 29. Against that recent peak, Friday’s price felt like a bargain, even though it was still above the Rs 1,32,400 recorded on last Dhanteras.

Silver shows the same pattern. It fell 52.4 per cent from its January 29 peak, but remained above last year’s Dhanteras rate. Consumers compared the price to the recent high, not to last year’s number, and the comparison made them spend.

What shoppers actually did

• They bought smaller, lighter items: pendants, chains, bangles, smaller coins and bars, not heavy investment pieces.
• They traded in old gold to fund new purchases, especially in smaller cities.
• They spread purchases across price points and formats instead of making one large buy.

Kalyan Jewellers’ Ramesh Kalyanaraman noted strong traction in Jaipur, Dehradun, Surat, Belgaum, Ara and Raipur, including from first-time buyers. Senco Gold’s CEO said sales value rose over 25 per cent, PNG Jewellers’ CMD cited industry indications of 25-30 per cent value growth, and PC Jewellers reported 30-35 per cent volume growth and 45-50 per cent value growth.

The All India Jewellers and Goldsmith Federation put nationwide gold and silver sales at more than Rs 66,000 crore over the past several days, with Delhi’s bullion markets alone crossing Rs 10,000 crore.

Why it matters for brand builders

Value rising while volume stays flat is a useful lesson in perception. The gold market did not create new tonnes of demand; it reframed the cost. The January peak became the reference point, and the exchange of old gold became a psychological discount.

For any marketer, the levers are the same: anchor the current price to a higher past price, offer a trade-in or upgrade path that reduces perceived outlay, and create smaller entry formats for cautious buyers. The purchase did not become cheaper in absolute terms; it became easier to justify.

Outlook

The GJC expects silver sales to rise 30 per cent in value and 10 per cent in volume, and wedding demand is providing support through a long Diwali weekend. The real number to watch is not the festive total; it is whether value growth turns into sustained demand after the anchor fades.

Source: ETRetail.com