For the first time in Indian history, silver has outshone gold in demand during the Diwali season, particularly on Dhanteras. Surging gold prices have led consumers to shift towards silver, which has become a more affordable choice amid high inflation. Gold sales dropped by about 15% in volume compared to last year, with approximately 35-36 tonnes sold, while silver saw an impressive rise, increasing 30-35% despite its own price hike of nearly 40%.
Surendra Mehta, secretary of the Indian Bullion & Jewellers Association (IBJA), highlighted the unprecedented demand for silver, prompting the association to begin tracking its sales. Mehta noted that consumers are increasingly viewing silver as an investment, especially with anticipated industrial demand from sectors like electric vehicles (EVs) adding to its appeal.
While gold sales volume decreased, total value rose to roughly Rs 28,000 crore due to the record-high prices, compared to Rs 24,000-25,000 crore last year. The World Gold Council (WGC) has forecasted lower overall demand for gold in India this year, with geopolitical factors and central bank purchases pushing prices to all-time highs, making silver an attractive alternative for buyers and investors alike.
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