Rise In Gold Prices Dampens Dhanteras Sales
22-carat gold was priced at ₹1,31,500 for 10 grams
HYDERABAD: The sharp rise in gold prices has dampened Dhanteras sales in Hyderabad, with customers cutting down on purchases and some turning to gold coins and silver as alternatives. Jewellery showroom managers said footfall had declined compared with last year, as rising prices made it difficult for buyers to stick to festive and wedding-season budgets.
On Friday, the occasion of Dhanteras, 22-carat gold was priced at ₹1,31,500 for 10 grams, while 24-carat gold was quoted at ₹1,43,450 for 10 grams. Silver stood at ₹1,950 for 10 grams.
Customers said they were struggling to stay within planned budgets. Sindhu Reddy, who visited a showroom with a fixed budget, said she ended up spending more than expected. The jewellery available within her budget was smaller than she had anticipated, forcing her to stretch her spending to buy a bigger set. She said the rise in gold prices had made purchases difficult, even as showrooms witnessed festive rush with Dhanteras coinciding with the wedding season.
“Compared with last year, Dhanteras sales have declined due to the sharp rise in gold prices. Customers who earlier preferred buying 10 grams of gold are now restricting their purchases to around five grams. We are also seeing fewer customers visiting showrooms. With the wedding season approaching, many had planned to buy a certain quantity of gold, but the current prices have made it difficult for them to stick to their budgets,” said Navnath S. Bhosale, a showroom manager in Somajiguda.
He said even bulk buyers were reconsidering. Some who had planned to buy 500 grams or 1.5 kg of gold were now exploring other options, including coins and silver for savings and investment. He also observed that online purchases were higher than offline.
Rohit Rudrangi, a shop owner from RP Road, said customers were opting for smaller quantities and lightweight jewellery this Dhanteras. “Earlier, we used to receive orders in kilograms, but now purchases have come down to grams. Customers are asking for smaller and lighter pieces. Though gold rates are comparatively lower than last year, the money flow is not encouraging. Sales and footfall are also lower than expected. Customers are coming to buy gold only if they have savings left after meeting other expenses,” he said.
Despite high prices, the tradition of buying gold on Dhanteras continues to draw some customers. Janardhan, who purchased gold on the occasion, said he believed buying gold on Dhanteras would bring Goddess Lakshmi and prosperity into his home.
To retain customers and encourage festive buying, showrooms are offering discounts and reducing making charges. “We are trying to provide as many concessions as possible to make customers comfortable with their purchases,” Bhosale said.
Jewellers hope the approaching wedding season and festive offers will help improve sales despite the high prices.