Diwali 2022: Mumbai saw peak demand for gold, diamonds and platinum
Demand for precious metals jumped 40% (YOY) ahead of Dhanteras, with gold contributing 70% of overall demand this festive season, reports the latest Justdial Consumer Report.
Demand for precious metals in Tier II cities remained elevated relative to Tier I, with Tier II cities seeing a 44% jump. Searches in Tier I cities for precious metals increased by 34%. As prices fell, gold remained the most sought after precious metal and saw demand jump 34% (YOY), silver 140%, platinum 82%, while diamond remained stable on Justdial.
Last year during Dhanteras the demand for gold was 3 times that of silver and this year it has increased to 4 times. The surge in demand is expected to spread cheer for retailers across the country ahead of Diwali.
Commenting on consumer trends, Prasun Kumar, CMO, Justdial, said, “Rising demand for gold is driven by falling prices. Demand in Tier I cities increased by 28% and in Tier II cities by 37%. The significant increase in gold demand in Tier II cities has been augmented by increasing disposable income and rising aspiration. The demand for silver has also increased steadily, registering a 2.4x growth across the country. We expect this demand to translate into festive cheer for retailers. »
Among Tier I cities, gold jewelry demand was dominated by the four cities of Bombay, Hyderabad, Delhi and Bangalore. Delhi leads in demand for gold coins, contributing nearly 41% of searches and Mumbai for gold bars with 34% of demand.
Coimbatore led gold jewelry demand among Tier II cities, followed by Chandigarh and Lucknow. For gold bars, Jaipur exceeded demand, followed by Coimbatore and Lucknow. Jaipur also led the demand for gold coins in Tier II cities with Coimbatore and Lucknow in second and third place respectively.
For silver, jewelry remained the most sought-after item, contributing 27% of demand. Among Tier I cities, Hyderabad tops the demand for silver jewelry, followed by Bangalore and Delhi. Silver coins remained popular in Delhi as the nation’s capital contributed 50% of the demand and Bengaluru led the search for decorative silverware, followed by Mumbai and Delhi.
Among Tier II cities, demand for silver jewelry increased by 38%, silver coins by 46%, and tableware by 41%. Vijayawada, Visakhapatnam and Rajkot witnessed peak demand for silver jewelry which saw its popularity increase by 59% (YOY). Vijayawada and Visakhapatnam also led the demand for silver tableware, while silver coins were popular in Lucknow, Udaipur and Jaipur.
Mumbai, Delhi and Hyderabad recorded maximum demand for diamond jewelery among Tier I cities, while Jaipur, Coimbatore and Indore dominated 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 cities.