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Gold worth Rs 20,000 crore sold on Dhanteras, says jewellers' body

IANS | November 14, 2020 12:55 PM

MUMBAI: The sale of gold this year on the auspicious occasion of Dhanteras has been 30 per cent more than the previous year. People bought gold worth a staggering Rs 20, 000 crore during the festival in 2020, according to the India Bullion and Jewellers Association (IBJA).

According to IBJA data, the sale of gold on Dhanteras across the country this year was about 40 tonnes, valued at approximately Rs 20, 000 crore.

IBJA's national secretary Surendra Mehta told IANS that last year, gold sales were about Rs 12, 000 crore. The figure has risen to Rs 20, 000 crore this year.

"Last year, about 30 tonnes of gold was sold. The sale has been about 40 tonnes this year, " Mehta said.

He said that while gold sales have increased by 30 to 35 per cent over the previous year, the price has increased by about 70 per cent.

Mehta said that this time the biggest reason for the increase in gold sales on Dhanteras has been the lack of jewellery sales over the last eight months, which led to pent up demand.

He said that during the lockdown, people could not buy gold jewellery because the market was closed. Now, with a wedding season ahead, people waited for the purchase of gold and silver on the occasion of Dhanteras.

In the meantime, the gold price has come down a little after touching a high of Rs 56, 000 and owing to Corona, the price is likely to shoot up again, making people purchase gold at this time.

Mehta said that this year, Dhanteras was celebrated for two days in some parts of the country including on Thursday, which gave people more time to buy.

According to the IBJA , the average price of gold of 24-carat purity (999 purity) on Friday was Rs 50, 849 per 10 grams (without GST). The average gold price of 22-carat purity (995 purity) was Rs 50, 645 per 10 grams.

At 6.42 pm on the Multi Commodity Exchange (MCX) on Friday, gold was trading at Rs 50, 925 per 10 grams, up 325 rupees from the last session.

The Ahmedabad-based President of the Gem and Jewellery Trade Council of India (GJTCI) Shantibhai Patel said that gold and silver remained strong, though he said that silver procurement was high as people buy utensils more than silver jewellery on Dhanteras.

Ajay Kedia, director, Kedia Advisory said that gold hit a high of Rs 56, 191 per 10 grams on MCX in August and at present the price is Rs 50, 000-51, 000 per 10 grams. The silver price had sprung up to a record Rs 77, 949 rupees per kilo on August 7, while at present the price is Rs 63, 000-64, 000 per kilo. Therefore, people have been inspired to make purchases now. He said the weakness of the dollar is also supporting gold in the international market.

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