Gold Silver Outlook: The festive season has arrived in India. Bullion markets are getting decorated for Dhanteras and Diwali. But this time the high price of gold and silver has raised a big question. The question is whether there will be rush of consumers in the market due to expensive gold or lethargy. Market experts believe that buying gold on festivals is an important part of Indian tradition. So, the demand will remain, but this time there is a big change in the way people shop.

Amid expensive gold, the buying pattern changed

Buying gold on the occasion of Dhanteras in India is considered very auspicious. Colin Shah, MD, Cama Jewellery, says that historically the demand for gold has always been strong during these festivals. This is because of our cultural importance attached to gold. However, due to the high price of gold, consumers are now buying according to their needs and budget. Nowadays people are opting for light and modern designed jewelery instead of heavy jewellery. These designs look good and easily fit into the common man’s budget.

Emphasis on making new jewelery from old jewellery

Consumers are adopting another smart method to keep the budget under control. According to Colin Shah, the trend of exchanging old gold for new gold has increased in the market. Buyers are giving away their old jewelery and getting new designs in exchange. Due to which no one-time financial burden falls on them and the tradition of the festival is also completed. A similar demand is seen in the wedding season as well. The average purchase of customers is Rs. 1.5 lakh to Rs. Between 3 lakhs. Like last year, sales are expected to increase by 15 to 20 percent during the major festive season.

Market movements are determined by the global market

Not only the local demand but also the global market has a direct impact on the price of gold. According to NS Ramaswamy, Head of Commodities at Ventura, gold is currently caught between several external factors. High interest rates in the US have dampened the attractiveness of investing in gold, but central banks around the world continue to buy gold. This is giving great support to the market. Gaurav Garg, head of research at Lemon, says that gold prices in India remain high due to the weakness of the rupee.

There is also a big change in the price of silver

Similar to gold, silver is also experiencing movement in the market. Prithviraj Kothari, managing director of Riddhi-Siddhi Bullion Ltd, says the strong dollar has certainly put pressure on precious metals, but silver is also seeing an improvement. The price of silver fluctuates a lot, as its demand is not only for jewelery but also for industrial work. In the future, foreign policies may determine prices, but in India, Dhanteras, Diwali and the wedding season will continue to strongly support real demand (physical demand) for gold and silver.