The soaring prices of gold and silver have cast a shadow over India's Diwali market, traditionally a peak period for precious metal sales. With record-high prices driven by escalating US-China tensions, Indian consumers are facing a dilemma.
Gold, trading at a staggering US$4,197.5 per troy ounce on Wednesday, has become a hot commodity as investors seek safe-haven assets. Meanwhile, the silver market is experiencing a liquidity crunch, with prices reaching an all-time high of US$53.60 per troy ounce on Tuesday and settling at US$52.43 on Wednesday.
India and China, two of the world's largest buyers of gold and silver, play a significant role in this market. Indian consumers have long considered it auspicious to purchase gold and silver during Dhanteras, the first day of Diwali, and Lakshmi Puja, the festival's most important day.
However, this year, the surge in prices has dampened enthusiasm. T. K. Chandran, managing director of Sree Kumaran Thangamaligai, a prominent gold and silver jewellery retailer in southern India, noted a 50% drop in jewellery demand this Diwali. He attributed this to consumers' hesitation, believing that prices may fall in the future.
But here's where it gets controversial: with such high prices, is it still wise to invest in gold and silver? And this is the part most people miss: the emotional connection Indians have with these metals during Diwali.
What do you think? Is it a wise move to invest in gold and silver despite the high prices? Or should consumers wait for a potential price drop? Share your thoughts in the comments below!
