Festive shopping momentum is gradually picking up across the markets of Jaipur as Diwali approaches. Bullion shops are witnessing steady visitor activity, driven largely by ongoing price corrections and stability in precious metals. This downward trend in rates has sparked renewed interest among buyers looking to make investments ahead of the festive season.
Steep Decline In Silver Valuations
A closer look at the local bullion market reveals that silver has experienced the most pronounced correction. While the white metal was trading as high as four lakh rupees per kg a few months ago, current rates have dropped to two lakh two thousand rupees per kg. Despite this steep slide, the approaching festival season continues to draw enthusiastic buyers to local storefronts.
Insights From Local Jewellers
Market experts note that long-term investment in precious metals remains a steady practice. Jeweller Adarsh Khandaka explains that despite current price dips, rates are expected to rebound as the festival approaches. Adarsh Khandaka noted that while buyers who purchased at the peak four lakh rate may feel disappointed, prices are projected to rise in the coming months, making the current period an opportune time to invest.
Daily Fluctuations In Trading
Over the past few weeks, silver prices have dominated market conversations due to daily fluctuations exceeding one thousand rupees. Currently, ninety-nine percent pure silver is priced at two lakh two thousand rupees per kg in Jaipur. Meanwhile, gold intended for jewellery making stands at one lakh forty-five thousand rupees.
Expectations Of A Price Recovery
Another local jeweller, Prahlad Khuteta, expects silver prices to reach two lakh fifty thousand rupees and gold to touch one lakh fifty thousand rupees by Diwali. Prahlad Khuteta stated that current markets maintain healthy vibrancy and that demand will accelerate once upward momentum begins. Although buyers initially held back more than anticipated, merchants remain optimistic about strong business turnover for the festive period.
Growing Demand Across Categories
Traders point out that despite price shifts, seasonal demand for weddings and festivals keeps the market active. Silver utensils, coins, and various decorative items are currently seeing high interest, alongside strong purchases of gold jewellery for upcoming weddings. Earlier this month, silver recorded its sharpest decline at nine point thirty-nine percent, amounting to a drop of twenty-one thousand five hundred rupees per kg.
Global Factors Influencing Rates
Market analysts suggest that prices will likely recover by Diwali, offering relief to those unsettled by the recent downturn. Spot silver in the United States is currently valued at fifty-five dollars per ounce. Factoring in a fifteen percent custom duty and three percent GST, bringing the effective tax to eighteen point four five percent, the landing cost of silver in India ranges between one lakh eighty-two thousand and one lakh eighty-five thousand rupees per kg, which explains the ongoing downward pressure on domestic rates.
