Jewellers across India saw sales on Dhanteras because gold prices fell, which encouraged customers to buy during the festive season. Retailers noted sales activity and more customer interest but the total volume of gold purchases stayed largely flat compared with last year.

Dhanteras is seen as a time to buy gold, silver and other precious metals and it traditionally starts the Diwali celebrations. This year softer gold prices gave buyers some relief those buying jewellery for weddings, gifts and traditional celebrations. I saw visitors at jewelers with customers looking at a range of gold ornaments, coins and lightweight jewellery. Retailers also noted interest in designs that give value within customers’ preferred budgets.

Even though sales were strong lower gold prices did not lead to a jump in purchase volumes. Many consumers stayed cautious, about spending balancing buying with household budgets.

The higher value of gold compared with years also shaped buying choices making customers focus on smaller amounts and practical jewellery.

The festive period is still an important time for the jewellery industry. Dhanteras purchases help the jewellery industry a lot adding a part to the yearly retail business.

Jewellers are hopeful that the momentum that comes from Dhanteras will keep going during the wedding season and the rest of celebrations.

Overall this year’s Dhanteras market shows a trend. Sales in money terms are strong thanks, to gold prices and high festive demand. However the number of purchases stays about the same.