Will High Gold Prices Spoil the Festive Shopping Mood on Dhanteras 2024?
As Dhanteras approaches, the tradition of buying gold is facing an unexpected hurdle this year – record-high gold prices. The price of gold has surged by nearly 25-30% since last year, reaching historic highs both globally and within India. This unprecedented price spike has left many potential buyers wondering if they can still afford the customary Dhanteras purchase.
Gold’s recent price surge has been remarkable. On October 23, 2024, international gold prices reached an all-time high of $2,759 per ounce, hovering above the $2,700 level since then. In India, Mumbai’s spot markets have recorded prices around Rs 79,500 per 10 grams, up from around Rs 62,000 during last year’s Dhanteras season. While gold prices have softened slightly in recent days, the overall cost remains steep, prompting both buyers and jewellers to brace for a slower sales season.
This price hike is expected to dampen festive demand significantly. According to Avinash Gupta, Director of the All India Gem & Jewellery Domestic Council, there is usually a noticeable rush of buyers in the days leading up to Dhanteras, as people book gold in anticipation of the auspicious day. However, that rush seems to be missing this year. Many jewellers anticipate that total gold sales will drop by around 20% compared to last year, with a preference for more affordable, lightweight pieces.
Rather than buying high-value items, customers are gravitating towards gold jewellery priced under Rs 1 lakh. This trend reflects a practical approach among consumers who wish to maintain the tradition of buying gold while minimizing the financial impact. To encourage buyers, jewellery stores are introducing special offers and discounts, hoping to attract customers even amidst the high prices.
The rise in gold prices is attributed to various factors, including economic uncertainty, international inflationary pressures, and global financial market volatility. As a safe-haven asset, gold often experiences price surges when markets are unstable. This year’s rally in gold prices is likely a result of both increased investment demand and the challenges facing global economies.
For many households, buying gold on Dhanteras is an annual ritual symbolizing prosperity and good fortune. However, with prices at their peak, this tradition may look a little different in 2024. Buyers may opt for smaller, token purchases, while some may even turn to alternative investments. Nonetheless, for those committed to upholding the Dhanteras tradition, jewellers’ discounts and offers may provide some relief.
Dhanteras remains an important cultural and economic event, but this year’s high gold prices have certainly thrown a wrench in the celebrations. While sales are expected to dip, the true spirit of Dhanteras – a celebration of prosperity and blessings – will persist, even if it means adapting to smaller purchases and token investments.
Reference from :- https://timesofindia.indiatimes.com/business/india-business/will-high-gold-price-play-spoilsport-on-dhanteras/articleshow/114704232.cms