Diwali 2023: Witnessing positive gold sales momentum, expect it to be sustained till Jan, say experts

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Diwali 2023: Buying gold or gold jewellery on Dhanteras and Diwali is considered auspicious by many. For a long time, gold has been seen as a safe haven investment for conservative investors. Gold tends to act as a hedge against risks over the long-term.

Amidst the ongoing global geo-political conflicts, gold has found favour again with investors.

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Amid Diwali, jewellers said that they are witnessing a positive sales momentum in the pre-Diwali season and expect it to be sustained till January 2024.

Ramesh Kalyanaraman, Executive Director - Kalyan Jewellers said, "With the festive and wedding season around the corner, we are witnessing a positive sales momentum in the pre-Diwali season and expect it to be sustained till January 2024. This year, the industry is benefitting from the extended wedding season as it coincides with the auspicious occasion of Diwali and Dhanteras."

"Considering jewellery preferences vary every 100 kms in India, influenced primarily by the diverse culture and background of consumers, we have been following a hyperlocal strategy to engage with the company's target audience. Our hyperlocal strategy has been an integral aspect to the brand, be it our product offering or our marketing campaigns in vernacular languages. Following this strategy, we have been successful in creating a niche market positioning as India's national-local jeweller, competing with the likes of pan-India as well as local jewellery players. We believe it has enabled us in appealing to a wide audience by attempting to understand the local market preferences and trends in various geographies," he added.

Kalyanaraman further said that the revamped interest among younger, millennial consumers towards the yellow metal, has led to acceleration in demand momentum for traditional temple jewellery as well as polki and uncut jewellery pieces.

"At the same time, there is sustained demand for dual-tone jewellery designs as well as diamond jewellery pieces, which offer versatility for both casual occasions as well as wedding and festive celebrations. As the industry gears up for a robust and bustling wedding season, another key aspect is the unprecedented shift from unorganized to organized jewellery players, wherein we stand as a key beneficiary. We believe our aggressive marketing strategy clubbed with this transition will play a critical role in boosting our growth momentum," he said.

Diwali 2023: Gold Prices

Snapping its four-day losing streak, gold prices recovered sharply by Rs 250 to Rs 61,200 per 10 grams in the national capital on Friday, amid strong global cues, according to HDFC Securities.

In the previous trade, the precious metal had finished at Rs 60,950 per 10 grams.

Silver also rebounded Rs 700 to Rs 74,000 per kilogram.

Meanwhile, the closing price for 999 purity gold was Rs 60,240 per 10 grams, while that of 999 purity silver was Rs 70,416 per kg, the data available on India Bullion and Jewellers Association's (IBJA) website showed on Saturday.