Gold and Silver Prices Surge, Leaving Consumers Wary of Upcoming Festival Spending
Gold prices in India have been on a steep upward trajectory over the past month, causing concern among consumers just days before the festival of Dhanteras. Alongside gold, silver prices have also seen significant increases, further straining the budgets of middle-class families who traditionally invest in precious metals during this auspicious occasion.
As Dhanteras approaches next week, the escalating prices of gold have left jewelry enthusiasts worried. Retail jewelers are also feeling the pressure, as the demand for jewelry this festive season appears to be significantly lower compared to previous years. Analysts attribute the current gold price surge to ongoing volatility in the country’s stock market, which has had a ripple effect on gold prices.
Current Gold and Silver Prices
On Wednesday, the price of 24-carat gold in Kolkata was reported at ₹78,850 per 10 grams, while 22-carat gold was priced at ₹74,950 per 10 grams. Over the past month, the price of these gold categories has risen by nearly ₹4,000. In addition, silver prices have taken a sharp jump, with the cost per kilogram in Kolkata reaching ₹98,350—an increase of over ₹11,000 compared to the end of last month.
It’s important to note that the listed prices do not include Goods and Services Tax (GST) and other additional charges imposed by various retailers. Consequently, consumers can expect to pay significantly more for gold and silver jewelry than the base prices suggest. For instance, the price of hallmark gold jewelry, when factoring in GST, exceeds ₹77,000, while the effective price for 24-carat gold becomes ₹81,215, and the cost of silver per kilogram rises to ₹1,01,300.
Impact on Middle-Class Consumers
As the festive season approaches, many middle-class families find themselves reconsidering their purchasing decisions due to the rising costs of gold and silver. Traditionally, Dhanteras marks the beginning of the Diwali celebrations, and buying gold is considered auspicious. However, the current pricing trends could deter many from making their usual purchases.
Experts are expressing concerns that if the current trends continue, prices could escalate even further in the coming weeks, making it increasingly difficult for consumers to buy gold and silver. This situation poses a significant challenge not only for consumers but also for retailers who rely on festive sales to boost their annual revenues.