According to the current Justdial Consumer Report, demand for precious metals increased by 40% year on year ahead of Dhanteras, with gold accounting for 70% of total demand during this holiday season.
- Demand for gold in Tier-I cities went up by 28% and in Tier-II by 37%
- Demand for precious metals in Tier-I rises by 34% and Tier-II by 44%
- Silver coins remained popular in Delhi as the National Capital contributed to 50% of the demand
- Bengaluru led the search for silver decorative items followed by Mumbai and Delhi.
Demand for precious metals in Tier-II cities remained high compared to Tier-I, with a 44% increase in Tier-II cities. Precious metal searches in Tier I cities increased by 34%.
With prices falling, gold remained the most sought-after precious metal, with a 34% (YOY) increase in demand, silver by 140%, platinum by 82%, and diamond demand remaining flat on Justdial.
Last year during Dhanteras, demand for gold was 3X of silver and this year it has jumped to 4X. The rise in demand is expected to spread the cheer for retailers across the country ahead of Diwali.
“The growth in demand for gold comes on the basis of lowering prices.” Demand increased by 28% in Tier I cities and 37% in Tier II cities. The huge increase in gold demand in Tier-II cities has been fueled by rising disposable income and aspiration. Silver demand has also been continuously increasing, with a 2.4X increase across the country. We anticipate that this demand will convert into holiday pleasure for shops.”Mr. Prasun Kumar, CMO, Justdial, commented on consumer patterns, saying,
The four Tier-I cities with the highest demand for gold jewellery were Mumbai, Hyderabad, Delhi, and Bengaluru.
Delhi had the most demand for gold coins, accounting for nearly 41% of all searches, while Mumbai had the highest demand for gold bars, accounting for 34% of all searches of the demand.
Coimbatore led the demand among Tier-II cities for gold jewellery followed by Chandigarh and Lucknow. For gold bars, Jaipur topped the demand followed by Coimbatore and Lucknow.
Jaipur also led the demand for gold coins in Tier-II cities with Coimbatore and Lucknow in the second and third place, respectively.
Jewelry remained the most popular silver item, accounting for 27% of total demand. Hyderabad had the highest demand for silver jewellery among Tier I cities, followed by Bengaluru and Delhi.
Silver coins were popular in Delhi, accounting for 50% of demand, and Bengaluru led the search for silver ornamental goods, followed by Mumbai and Delhi.
Silver jewellery demand increased by 38% in Tier II cities, silver coins by 46%, and dining items by 41%. Vijayawada, Visakhapatnam, and Rajkot experienced the most demand for silver jewellery, which increased in popularity by 59% year on year.
Silver dinner sets were also popular in Vijayawada and Visakhapatnam, while silver coins were popular in Lucknow, Udaipur, and Jaipur.
Mumbai, Delhi, and Hyderabad saw maximum demand for diamond jewellery among Tier-I cities while Jaipur, Coimbatore, and Indore led the demand among Tier-II cities.
For platinum jewellery, Mumbai, Hyderabad, and Bengaluru led the demand among Tier-I cities and Surat, Coimbatore, and Jaipur among Tier-II.
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