Gold and silver prices have experienced a significant decrease just days prior to Dhanteras, prompting consumers to reconsider their festive purchases. Dhanteras, which is celebrated on November 6 this year, is regarded as an auspicious occasion for buying precious metals in many Indian households. The recent price drop offers some relief to buyers, yet it raises the question of whether now is the right time to purchase gold, silver, jewellery, or coins.

On November 3, silver prices fell nearly 3 per cent on the Multi Commodity Exchange (MCX), losing more than Rs 5,000 per kg. By around 11:50 am, silver futures were trading at Rs 1,78,624 per kg, down Rs 5,155. This decline follows a sharp correction in October, where silver futures dropped approximately 20 per cent, while gold futures fell around 7 per cent.

As households consider buying gold for weddings, gifting, or long-term savings, the recent price decline may provide an opportunity. However, buyers are advised to avoid interpreting a single day’s decrease as an indicator that gold has become inexpensive.

Factors Influencing Gold and Silver Prices

The prices of gold and silver are influenced by various factors, including global bullion market movements, interest rate expectations, and the performance of the US dollar and Indian rupee. Vikram Subburaj, CEO of Giottus.com, noted that domestic prices will continue to react to fluctuations in the rupee-dollar exchange rate and international market trends. He suggested that staggered buying and disciplined position sizing may help manage market volatility.

For consumers planning to purchase jewellery, the decision should depend on individual budgets and the intended purpose of the purchase. Gold jewellery remains popular, but it is essential to consider additional costs such as making charges, wastage charges, and GST, which may not be recoverable upon resale.

Before buying jewellery, consumers should verify the purity of the metal by checking for the Bureau of Indian Standards (BIS) hallmark and the six-digit Hallmark Unique Identification (HUID) code, which can be verified through the BIS Care app.

Buying Options for Gold and Silver

Gold coins are a traditional choice for those looking to buy gold without incurring jewellery-making charges. Available in various weights and purity levels, buyers should compare the total purchase price, including any minting or fabrication premiums, rather than focusing solely on the gold rate. It is also advisable to inquire about buyback conditions, as a coin’s resale value depends on its purity and weight.

Silver remains an appealing option for consumers wanting to participate in Dhanteras without spending as much as they would on gold. Popular purchases include silver coins, idols, diyas, and utensils, often intended for puja or gifting. However, it is important to note that silver prices can be volatile, influenced by both investment demand and industrial consumption.

Digital gold has emerged as an alternative for consumers wishing to buy gold in smaller amounts without visiting a jewellery store. Gaurav Mathur, Founder and CEO of SafeGold, mentioned that the recent price correction has led to increased demand for digital gold purchases. Many consumers are now opting to hold gold digitally rather than taking physical delivery, with purchases available from as little as 0.1 grams.

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