Indians buy 30% more gold after recent price correction

Kolkata: Indians stepped up purchases of precious metals during the Dhanteras-Diwali period despite elevated prices, with gold buying rising 30% by volume and silver demand increasing 10% over the same period last year, according to the India Bullion and Jewellers Association (IBJA). Jewellers said this signalled a revival of demand ahead of the crucial wedding season.

As per the industry body, consumers bought 52 tonnes of gold worth ₹72,000 crore and 300 tonnes of silver valued at ₹5,400 crore during this year’s Dhanteras-Diwali. The surge came after gold prices corrected from a peak of around ₹1.8 lakh to ₹1.42 lakh per 10 grams, encouraging buyers to return to the market. Advance purchases for the wedding season, which begins in mid-November and continues until March, also contributed to the increase.

“Jewellers have made good business in this year’s Dhanteras and Diwali,” said IBJA national secretary Surendra Mehta.

There was a pent-up demand in the market, after many consumers had earlier halted purchases following Prime Minister Narendra Modi’s appeal not to buy gold, he said. “Consumers had stayed away from the precious metal. But since the price has fallen and there is a chance of prices moving northwards again as Brent crude prices have fallen, people have come out to buy gold. In fact, buying is still continuing .”

The timing of the festivals also supported purchases, with Dhanteras falling on November 6 and Diwali on November 8, both at the beginning of the month when most salaried people receive their salaries and festive bonus.

“This has resulted in healthy cash flow in the market, encouraging consumers to shop enthusiastically. Gold prices have also been relatively lower over the past four to six months, further improving purchasing sentiment,” said Rajesh Rokde, chairman of the All India Gem & Jewellery Domestic Council. This fiscal year till September, gold sales by volume fell by almost 50% due to price and import duty increase, and PM Modi’s call to avoid purchase of gold.

Read more: Smallcap mutual fund inflows drop 29% MoM to Rs 6,407 crore in October. Should investors be cautious or continue investing?Gold has delivered substantial returns over the past few years, with prices rising from around ₹60,000 per 10 gm in 2023 to ₹80,000 in 2024, ₹1.15-1.20 lakh in 2025 and about ₹1.42 lakh this year during the Dhanteras-Diwali period. Silver too has witnessed significant appreciation. An analysis of eight years of business performance by Bengaluru-based C Krishniah Chetty Jewellers shows that gold sales volumes during this festive season were the third highest in a decade, despite prices being around 10% higher than a year ago.

“The overall sentiment has remained unshaken, with consumers continuing to repose confidence in gold jewellery despite the unprecedented rise in prices over a 12-month period,” said C Krishniah Chetty Jewellers director C Vinod Hayagriv.

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Natural diamond also demonstrated resilience, recording their second-highest sales volume in eight years. The retailer reported a 250% rise in natural diamond sales on Dhanteras and a 47% rise during the Diwali season. This comes amid turbulence in the natural diamond industry due to global sanctions affecting Russian diamond supplies and growing competition from lab-grown alternatives. Lab-grown diamonds are emerging as an additional category rather than replacing natural diamonds.