However, total gold order volumes fell 10–15% from a year ago even as sales value jumped sharply, according to the All India Gem and Jewellery Domestic Council (GJC). Yet, festive purchases are expected to cross ₹50,000 crore by Sunday evening, it added.
Dhanteras, which marks the first day of Diwali, is an auspicious occasion when Indians typically buy silver or gold. While Diwali will be celebrated on Monday, wedding-related gold purchases have also commenced.
“The sentiment is strong despite high prices,” said Rajesh Rokde, chairman, GJC.
“Consumers are buying strategically—gold coins are leading demand, and hallmark-certified lightweight jewellery is performing well. Silver items, especially coins and puja articles, have surged nearly 40% over last year. Silver is no longer a secondary choice but a smart, festive investment for value-conscious buyers,” he added.
On Saturday, consumers mostly bought lower-grammage gold and silver to mark the annual tradition, according to industry experts. In Delhi’s Lajpat Nagar market, silver stores opened earlier than usual with shoppers making a beeline to buy small coins, chains, and idols of gods.
“While some consumers are choosing smaller quantities or lower grammage in gold and higher on silver due to pricing considerations, the overall billing value has seen a marked increase,” said Samit Guha, managing director and chief executive of MMTC-PAMP India Pvt. Ltd, which sells gold and silver coins and bars. “While cautious buyers are opting for lower karat (K, a measure of purity), the overall demand remains robust and continues to show growth over the previous year.”
In terms of grammage, silver sales were slightly higher than gold, while gold sales were stronger at lower weights, Guha added. “Overall, this year, we have witnessed approximately twice the billing value compared to last year, reflecting strong consumer preference for our premium 24K gold and purest silver minted coins and bars at 999.9+ purity.”
Key Takeaways
- Gold prices in India have surged about 66% this year, yet Dhanteras sales by value are set to cross ₹50,000 crore, although order volumes fell 10–15% from last year.
- This Dhanteras, consumers favoured gold coins, hallmark-certified lightweight jewellery, and silver items, with silver sales rising nearly 40% year-on-year as buyers adapted to high gold costs.
- Schemes like Tanishq’s zero-deduction gold exchange and increased first-time buyers at Kalyan Jewellers signal strong sentiment, with overall billing values nearly doubling over last year at leading retailers.
Rising prices
International gold prices have increased 58% this year (as of 17 October, Friday), marking the steepest annual gain in 45 years, according to the World Gold Council (WGC).
In September, gold prices rose 11.6%, followed by another 7.9% jump in the first two weeks of October—breaking past the $4,000-per-ounce mark for the first time ever, the council said in a statement on Friday.
Gold prices in India have mirrored this trajectory, climbing 66% year-to-date. On Friday, the price of 24-karat gold (the purest form) was about ₹1,32,953 per 10 grams in Delhi, while that of 22-karat gold was about ₹1,21,883 per 10 grams.
But strong investment-led demand for gold has more than offset the slowdown in sales volume, according to WGC. Indians are also buying gold for the peak wedding season, which typically stretches from November to February, although consumers are opting for lower-carat (lower-weight) pieces, affecting overall retail volumes, the World Gold Council said.
India’s gold jewellery consumption in tonnes fell 17% year-on-year in the April–June quarter, per WGC; globally it declined 14%. Meanwhile, demand for gold bars and coins increased 7% on-year during the three months—the eighth consecutive quarter of growth.
However, here too—the impact on affordability was reflected in growing demand for coins weighing under 10 grams.
Exchange offers and buybacks
Gold and silver stores have been offering several incentives to capitalise on India’s festive-season tradition.
Last month, Titan Co.’s flagship jewellery chain, Tanishq, rolled out a campaign offering ‘0% deduction’ on all gold categories, even as low as 9 karat, as part of its old-gold exchange programme.
“Despite record-high gold prices, we’re witnessing renewed enthusiasm this festive season. Consumers are viewing price volatility as a strategic opportunity to reinvest—whether through gold coins or by upgrading their existing jewellery,” said Ajoy Chawla, chief executive, jewellery division, Titan.
“Our ‘Zero Deduction Gold Exchange Programme’ has seen a sharp rise in traction, with its contribution increasing from the usual 35–36% to 38–40% since Navratri (22 September–2 October),” he added. “Overall growth is being driven by higher-ticket values, while buyer growth remains in early single digits.”
While jewellery stores with several outlets are witnessing a preference for lighter jewellery, high-end independent stores catering to weddings are experiencing strong sales with minimal impact on volume. In contrast, smaller stores are struggling, the World Gold Council said.
“Our festive pre-book offer has seen encouraging participation. Notably, about 40% of the buyers this season are first-time customers, indicating robust demand and renewed enthusiasm among shoppers,” said Ramesh Kalyanaraman, executive director, Kalyan Jewellers Ltd.
“In terms of trends, gold and silver coins continue to see exceptional demand, often exceeding supply in some locations. Within the jewellery category, diamond sets are seeing renewed interest, reflecting a broadening aspiration among consumers,” he added.
Sachin Jain, managing director, World Gold Council, said sentiment for gold jewellery, coins, bars, exchange traded funds, and digital gold remains upbeat.
“Customers are doing token purchases and heavy pieces are also being bought. Due to record number of price increases the industry has also passed on some benefits to their consumers by offering healthy discounts,” Jain said. “Overall, we expect gold-buying interest to remain strong through the current festive season and upcoming wedding period.”
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