Demand for precious metals in Tier II cities remained high compared to Tier I while Tier II cities saw a 44% increase. Precious metal searches in Tier I cities increased by 34%. With the price falling, gold is still the most sought-after precious metal and has increased demand by 34% (year-on-year), silver 140%, platinum 82%, while that for diamonds remained stable on Justdial.
Last year during the Dhanteras the demand for gold was 3 times that of silver and this year it has increased 4 times. The surge in demand is expected to spread cheers for retailers across the country ahead of Diwali.
Commenting on consumer trends, Prasun Kumar, CMO, Justdial, said, “Demand for gold increased due to falling prices. Demand in Tier I cities increased by 28% and in Tier II cities by 37%. The substantial increase in gold demand in Tier II cities has been underpinned by growing disposable income and growing aspirations. Demand for silver is also steadily increasing with a 2.4-fold increase nationally. “
Among tier I cities, the demand for gold jewelry dominated by the four cities of Mumbai, Hyderabad, Delhi and Bengaluru. Delhi ranks first in demand for gold coins, contributing almost 41% of searches and Mumbai for gold bars with 34% of demand.
Coimbatore leads the demand in Tier II cities for gold jewelry, followed by Chandigarh and Lucknow. For gold bars, Jaipur was first in demand, followed by Coimbatore and Lucknow. Jaipur also leads the demand for gold coins in Tier II cities with Coimbatore and Lucknow in second and third place respectively.
For silver, jewelry is still the most searched item, accounting for 27% of demand. Among Tier I cities, Hyderabad ranks first in demand for silver jewelry, followed by Bengaluru and Delhi. Silver coins are still popular in Delhi as the National Capital accounts for 50% of the demand and Bengaluru leads the way in search of silver ornaments, followed by Mumbai and Delhi.
Among Tier II cities, demand for silver jewelry increased by 38%, silver coins by 46% and dinnerware by 41%. Vijayawada, Visakhapatnam and Rajkot have seen maximum demand for silver jewelry, with a 59% increase (YOY) in popularity. Vijayawada and Visakhapatnam also lead the demand for silver tableware while silver coins are popular in Lucknow, Udaipur and Jaipur.
Mumbai, Delhi and Hyderabad saw maximum demand for diamond jewelry in Tier I cities while Jaipur, Coimbatore and Indore led the demand in Tier II cities. For platinum jewelry, Mumbai, Hyderabad and Bengaluru lead the demand among Tier I cities and Surat, Coimbatore and Jaipur fall under Tier II.