Home / News / India /  Demand for gold, silver picks up ahead of festival season
Listen to this article

NEW DELHI: Consumer interest in gold and other precious metals has risen 20% quarter-on-quarter with demand for the yellow metal growing ahead of silver this festival season, according to data by hyper-local search engine Just Dial which collated data basis local searches in cities driven through desktop websites, mobile site, mobile apps, voice, and text enquiries.

India is in the middle of peak festivities - Dhanteras and Diwali followed by a wedding season typically drive up demand for gold.

Local searches for precious metals in tier-2 cities grew ahead of tier-1 markets, it said.

Inquiries for gold were thrice that of silver, the latter reported 30% growth in quarter-on-quarter in searches. Meanwhile, both gold and diamond saw a growth of 18% in the period.

In terms of demand volume, searches for gold were highest in Mumbai, Delhi, and Hyderabad followed by Bangalore, Chennai, Kolkata, Pune, and Ahmedabad.

“Among Tier-II cities, Lucknow, Jaipur, and Coimbatore were the top-3 with maximum demand followed by Vijayawada, Surat, Rajkot, Visakhapatnam, Patna, Chandigarh, and Thrissur. Most of the demand in gold was for jewellery, coins, and bars. Demand for gold jewellery has picked up by 20% quarter-on-quarter with chain, necklace, and nose ring being the most sought after," it said.

Demand for gold was also driven by a correction in prices that have simmered down since their 2020 highs.

“Correction in gold prices and strong demand triggered by the festive season across the country, has made the yellow metal the most sought after. On Just Dial, demand for gold in Tier-1 cities remained high but it was also interesting to witness a faster growth in demand in Tier-II cities led by Lucknow, Jaipur, and Coimbatore," said Prasun Kumar, chief marketing officer, Just Dial.

Demand for other precious metals such as silver and diamond are also encouraging, said Kumar.

For silver, Delhi, Hyderabad, and Bangalore were the top three markets with maximum demand among tier-I cities followed by Mumbai, Chennai, Kolkata, Ahmedabad, and Pune.

For gold, silver, and diamond, demand growth rate in tier-II cities remained higher than tier-I cities. In terms of gold, demand growth rate in tier-II towns remained marginally ahead of tier-I cities.

For silver, tier-II cities saw twice the growth rate versus demand in tier- 1 while demand for diamond also remained higher in tier-II cities compared to tier-1 cities, according to the data.

Mumbai, Delhi, and Chennai topped demand for diamonds followed by Hyderabad, Ahmedabad, Kolkata, Bangalore, and Pune. Among Tier-II cities, the traditional diamond hub of Surat witnessed maximum demand followed by Lucknow and Bhopal.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
Get alerts on WhatsApp
My ReadsRedeem a Gift CardLogout