“Gold has always been integral to festivals and celebrations in India, particularly so during Dhanteras, Diwali, and the ensuing wedding season. Millions of Indians believe that purchasing gold during the auspicious occasion of Dhanteras will usher in good fortune and wealth. Reflecting this sentiment, this year, Dhanteras is likely to mark the onset of a modest buying period, providing some respite after a prolonged phase of suppressed demand and subdued activity due to the current pandemic. A part of this latent demand is expected to resurface, although lifetime-high prices and the shadow of Covid will continue to impact overall sentiment and lead to a “wait-and-watch” approach by the consumers. Digital gold providers like SafeGold, Augmont, and MMTC-PAMP, and other online platforms could find this period very conducive for increasing volumes and for broadening the consumer base. Large retailers are relatively better placed than the small unorganized, unbranded stores as they engage with their consumers digitally and alter their in-shop experience building in safety measures.
This Dhanteras is special as the situation is challenging but the hope and the thirst for recovery are much stronger than ever. Gold, the most ubiquitous Dhanteras investment, is the best performing asset class and in addition, the higher savings following a drop in consumption expenditure of many households as a result of lockdown could flow to gold.”
