Gold rush powers Rs 1 lakh crore Dhanteras spending despite record prices: CAIT

Indian consumers splurged an estimated Rs 1 lakh crore during Dhanteras this year, led by strong demand for gold and silver despite steep price hikes, a traders’ body said on Saturday. According to a report by news agency PTI, the Confederation of All India Traders (CAIT) estimated that bullion sales alone contributed around Rs 60,000 crore to the total festive spending, a 25% jump from last year, as buyers thronged jewellery markets even though gold prices surged nearly 60 per cent year-on-year to cross Rs 1.3 lakh per 10 grams.

“The past two days have seen an unprecedented rush in jewellery markets,” said Pankaj Arora, national president of CAIT’s jewellery chapter, the All India Jewellers and Goldsmith Federation. He added that Delhi’s bullion markets alone recorded sales exceeding Rs 10,000 crore.

Dhanteras, observed on the thirteenth day of the Hindu month of Kartik, marks the start of the five-day Diwali festival and is considered an auspicious occasion for buying gold, silver, utensils, and other symbols of prosperity. Despite silver prices climbing around 55 per cent to Rs 1.8 lakh per kilogram from Rs 98,000 last year, CAIT said demand remained buoyant as consumers continued to see precious metals as a safe-haven investment.

Beyond bullion, the festival generated an estimated Rs 15,000 crore in utensils and kitchenware sales, Rs10,000 crore in electronics and electrical goods, and Rs 3,000 crore in decorative and religious items, according to the traders’ body.