Indian Gold and Silver Buying Booms Amid Record High Prices

Indian consumers have been purchasing gold and silver in record amounts for Dhanteras and Diwali despite record high prices. Industry officials note strong demand as people opt for bullion due to better returns compared to the stock market. This surge could also impact India's trade deficit.

Indian consumers showed resilience against record high precious metal prices by actively purchasing gold and silver ahead of the Dhanteras and Diwali festivals, according to industry leads.

The nation, ranked as the world's second-largest gold consumer, has embraced bullion amid a cooling stock market, prompting expectations of continued price rallies. However, a surge in gold imports could widen the trade deficit and strain the rupee, insiders warned.

Sector specialists confirm that despite elevated prices, buyers find gold and silver more attractive due to their superior returns over equities. The buying spree, notably in coins and bars, exemplifies a strategic portfolio diversification during one of India's biggest gold-purchasing periods.

(With inputs from agencies.)