New Delhi- Indian consumers are snapping up gold for Dhanteras and Diwali despite record-high prices, anticipating that the precious metal will offer stronger returns than the cooling stock market, industry leaders report. The continued enthusiasm from the world’s second-largest gold consumer could bolster global prices, even as rising imports threaten to widen India’s trade deficit and impact the rupee.
"Gold demand has stayed solid, especially for coins and bars, as returns remain attractive compared to stocks," said Saurabh Gadgil, chairman of PNG Jewellers. With gold prices reaching 78,919 rupees per 10 grams—a 31% increase from last year—festive purchases this season are anticipated to surpass last year’s in value, though volumes may remain consistent, according to Prithviraj Kothari, president of the India Bullion and Jewellers Association (IBJA).
Dealers reported premiums of up to $1 an ounce on Tuesday, a sharp rise from last week’s $4 discount. Silver, too, attracted substantial interest, with local prices hitting a record 100,081 rupees per kilogram, as investors looked to diversify portfolios amid higher returns in recent months, said Chirag Thakkar, CEO of Amrapali Group Gujarat.
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