Gold sales expected to surge by 22% this Diwali: IBJA's Surendra Mehta

Mumbai's Zaveri Bazaar, steeped in tradition and history, stands as one of Asia's largest and most iconic jewellery markets. As Diwali, the festival of lights, approaches, all eyes are on the glittering gold within this bustling marketplace.

This year, gold has shone brightly as the best-performing asset class, with an impressive 12% gain in value. In contrast, the stock markets, including Sensex and Nifty, have seen more modest gains, and even the Dow Jones has only risen by around 3%. Meanwhile, the Dollar Index has increased by a mere 1.5%. Gold, therefore, emerges as a standout performer in the world of investments.

Surendra Mehta, the National Secretary at the India Bullion and Jewellers Associations (IBJA), has high hopes for this year's Diwali sales. He confidently asserts, "We should be looking at 20-22% higher sales this Diwali."

Mehta points out that last year, on Dussehra, gold prices were at ₹50,060, and this year, they have surged to nearly ₹60,800, providing a remarkable 21% return. This significant return is likely to fuel the passion for gold among Indian buyers, particularly women who have a deep-seated affection for the precious metal.

With escalating geopolitical tensions and trade barriers, many anticipate further price increases. Mehta predicts that this year's market will be as good as last year's or maybe much better than last year.