Silver Surges, Outshines Gold This Festive Season

31 Oct 2024 , 01:31 PM

This Dhanteras season saw silver sales overtake gold sales for the first time in the history of the Indian jewellery sector. Due to the depressed demand for gold caused by high costs, consumers are now purchasing silver instead.

“Despite prices being 40% higher than last Dhanteras, silver sales have increased by 30-35% this year,” Surendra Mehta, national secretary of the Indian Bullion & Jewellers Association (IBJA), told ToI. “We are collating data for silver because this is the first time we are seeing such a huge demand,” he stated.

Sales of gold decreased by 15% to about 35–36 tonnes from 42 tonnes during the previous holiday season, but demand for silver rose by 30–35%. However, the total amount of gold sales increased from roughly Rs 24,000 to Rs 25,000 crore last year to nearly Rs 28,000 crore due to the 30% increase in the average price of gold.

The anticipated increased industrial demand for silver, primarily from electric vehicle makers, is another factor driving the spike in demand. “People have now begun to understand that there is a real opportunity in investing in silver,” Mehta stated.

According to the World Gold Council, the current record-breaking price surge may cause India’s demand for gold to drop to a four-year low in 2024. The price of gold on NYMEX crossed the $2,800 per ounce threshold.

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