The weak rupee didn't deter Indians from hitting the jewelry shops in larger than expected numbers as the traditional holiday season started. Not only were gold sales greater than expected, despite prices hitting a five-year high, but silver saw a much stronger presence in shoppers' bags than usual.
It could be that inflation in India, which stood at 9.75% for October and is rising, added to the traditional holiday demand. Those who could not afford gold this year apparently opted for silver instead of sitting out the buying season. Whether from changing fashion or the price of gold, jewelers report that lighter weight bracelets and other jewelery is more popular this year than the traditional heavy designs.