High prices may take the sheen off gold this Diwali-Dhanteras

India's leading jewellers expect gold demand to drop by 15-20% this Diwali-Dhanteras as compared to last year same period as gold price is nearing Rs 81,000 per 10 g mark, forcing many of them to come up with freebies beyond making charges discount in which is usually the peak shopping period.

Diwali-Dhanteras is the largest gold jewellery shopping period in the country as it is considered auspicious and people even buy wedding jewellery, accounting for about 30-40% of the annual sales.

Yet, jewellers such as Senco Gold & Diamond, Jos Alukkas and Malabar Gold & Diamonds are some who have come up with offers like winning electric cars, SUVs, iPhone16 smartphone, gold coins with every purchase and even a gold rate protection plan to safeguard against price changes to woo consumers.

"The price of gold is constantly heading northwards which is dampening the mood of the customers as the precious metal is pinching the pockets. At this price level, the demand for gold will drop by 15%-20% year-on-year," said Suvankar Sen, managing director and CEO of listed jewellery firm Senco Gold & Diamond.